By on February 3, 2015

gm-avtovaz-500000th-chevrolet-niva

Amid a weakening, unstable ruble, General Motors will suspend production at its St. Petersburg, Russia plant from mid-March through mid-May 2015.

Automotive News reports the automaker will also raise prices in response to the currency challenge. Per Russian daily publication Kommersant, GM has already begun to do so, with models like the Opel Astra and Chevrolet Cruze — both built in St. Petersburg — seeing a 20 percent increase in pricing.

Meanwhile, Ford lowered expectations for its European business in 2015 as a result of the ruble, forecasting a loss wider than the $250 million the automaker thought it would lose this year.

Overall, sales in Russia are projected to fall to 1.89 million this year, down from 2.49 million in 2014. That said, most automakers see the 2015 figure as overly optimistic at best.

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4 Comments on “General Motors Suspends Russian Production Amid Weak Ruble...”


  • avatar
    CoreyDL

    So GM is tied in there with Lada production? That symbol on the right is the Lada Viking boat. Was not aware.

    How about an in-depth exploration of Russian auto production since 1990?

  • avatar
    Onus

    This is GM-Avtovaz. They produce the Chevrolet Niva. The Chevrolet Niva was a Autovaz product meant to replace the original Niva. But, they had some difficulties in the 90’s so they paired up with GM to build it. Though it didn’t change at all other than the grill and logo. Mechanicals are all Niva underneath with a Avtovaz engine. I believe they had a short run with Opel engines and gm transmission but that was about it.

    GM doesn’t product any other cars with Avtovaz which is Majority owned by Renault Nissan. They are paired up with some other Russian automakers to do contract production.

    This automotive price problem could have been worse but the Russian government has been pushing localization hard by offering tariff elimination on certain automotive parts if the localization is above a certain high percentage. Local suppliers have also been coming on-board in recent years.

    I believe Ford and VW are starting local engine production this year IIRC. GM will be buying locally produced engines from PSA. You should see that in the new Chevorlet Niva.

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