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GM to Trim Russian Output, Raise Prices Amid Currency Woes

6 Février 2015 - Autoblog

GM to Trim Russian Output, Raise Prices Amid Currency Woes

General Motors is shutting down its factory in Russia's second largest city, St. Petersburg, from the middle of March until the middle of May as the country's currency, the ruble, continues to give economists fits.

The ruble's value has plunged due not only to western sanctions, but a precipitous fall in oil prices. We knew these factors were already impacting the auto industry there, as Ford reported in its 2014 earnings statement, and now they're forcing GM to cut production at the factory, shown above, that is responsible for production of the Chevrolet Cruze and Opel Astra.

Meanwhile, Automotive News is citing Russian outlet Kommersant as saying that GM has hiked its prices in the country by an average of 20 percent over the past two months. While a GM spokesman confirmed the St. Petersburg plant would be shut down for the two-month span reported by Kommersant and AN, he would not confirm the price increase.

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