Report: Russia reduces ruble risk for foreign carmakers image

According to the daily newspaper Kommersant, the Russian government plans to put into action new measures in order to ease the risk of the ruble’s volatility for foreign auto makers who have centered production in the country. At the moment, Russia has working in the country car producers such as Ford Motor Company, Volkswagen AG, Renault S.A. and Nissan Motor Co.

 

Car manufacturers have previously asked the government to find measures for this situation last year when the ruble abruptly fell, but officials began working on some steps only after General Motors cut back its presence in the market this March. The American corporation announced that it would close its factory in Russia and also pull out its Opel auto brand from there. The U.S. car giant will also cut back its Chevrolet production and will mainly focus on selling top-end cars in Russia such as the Cadillac, the Camaro sports cars and the Tahoe sports utility vehicles.

 

Kommesant stated that the changes are being taken into consideration by the Economy Ministry and if they were to be approved, it would happen around the end of the second quarter of this year, or the early beginning of the third. No response for the Economy Ministry has yet surfaced.

 

With several years of growing with an excess of 10%, the car sales in Russia descended because of a weaker ruble but what added to the causes rest in the Western sanctions for the country over Ukraine and a drop in the oil prices.

 

 

 

By Gabriela Florea