Russia: Nissan endures sales fallout by stopping some models, increasing prices on others image

Japan’s Nissan and its French sibling Renault, according to the alliance’ chief executive officer Carlos Ghosn, is currently axing the orders on some of its models sold in the country, and prices on the rest could rise if the currency trouble continues.

According to Ghosn who talked to the media during a visit at Nissan’s headquarters in Yokohama, Japan, the model freeze is affecting certain cars and the outstanding orders would still be honored. “We didn’t do it (suspend orders) overall, just on some models we said, ‘Sorry, until we see where this situation is going we don’t take orders,” he commented.

Russia’s auto industry, once seen capable of overcoming Germany for the top sales position in Europe, has seen strong headwinds in 2013 and 2014, but this year has been especially hard – the local currency, the ruble – has been impacted by the slowing economy, rising political tensions, economic uncertainties and the global drop in oil prices. So far, the ruble has dropped around 50% to the dollar. Now, Nissan has said that it already raised prices on around 50% of its local lineup by 5 to 8% because they used higher levels of parts from outside Russia. The country is Nissan’s fifth biggest worldwide market.

Via Reuters