General Motors will withdraw the Opel brand from Russia by 2015-end, the company told a German newspaper recently. In the last 12 months, the Russian economy has suffered due to dropping oil prices and the economic sanctions imposed by Western countries. This has caused the Russian Ruble to tumble against the American dollar, thereby significantly increasing prices of imported cars as well as increasing inflation.
Reports in the German media also suggest that American automaker will discontinue contract assembly of Chevrolet cars in Russia. German newspaper, Handelsblatt, recently quoted Opel CEO Karl-Thomas Neumann saying that General Motors no longer found prospects in the Russian new car market suitable in the short, medium and long term. “We do not have the appropriate localisation level for important vehicles built in Russia, and the market environment does not justify a major investment to further localise," he said.
However, it will continue selling two-three models of the Chevrolet line-up in the country. GM will continue offering Cadillac models in the Russian market, and the production of the next-generation Lada-based Chevrolet Niva will also continue as planned in 2016.
In line with the current market scenario, GM will also close down its St Petersburg factory as a part of its withdrawal from the country.
Dipan Sur
Viraaj Bhatnagar
Suraj Viswanathan
