/ Ford, General Motors, Industry, News / Russia’s problems threaten European automakers

Russia’s problems threaten European automakers

Linked In Share
Russia’s problems threaten European automakers

With a dwindling demand for new cars, a falling currency and now the geopolitical troubles brought by the Crimean crisis, Russia’s threat of additional economic measures could hit automakers like Ford or Opel.

Just as the carmakers are starting to recover from the six-year long European economic crisis, Russia’s problems – which was set to overcome Germany as the region’s biggest auto market – which started last year, are threatening their evolution.

“The problem with Russia is that it’s a polarized market,” said Philippe Houchois, an analyst for UBS. “There’s the high end and the low end, and not much in between.”

Ford announced at the beginning of the month its decided to cut 950 jobs at two of its three joint venture plants in Russia, but also reiterated its forecast to break even in Europe by 2015 and then return to profitability.

For Opel, meanwhile, the problem is more serious – General Motors decided to integrate the Russian auto unit under the GM Europe since the start of 2014 – which means any failings in the market would reflect on its full European revenue.

According to the Moscow-based Association of European Businesses, GM sells Opel, Chevrolet and Cadillac in Russia and had a market share of 9.3% in 2013, while Chevrolet is the No.1 US brand in the country. Still, the sales of Chevrolet models fell in 2013 a lot steeper than the overall decline – 15% to just 5%.

Via Automotive News Europe

by Aurel Niculescu (my Google+) - Monday, April 7th, 2014 - filed under Ford, General Motors, Industry, News. Image credit: .
Linked In Share
Related Articles
auto market crisis problems russia


Discuss: Russia’s problems threaten European automakers

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Test Drive: Honda Civic Tourer 1.8 Executive MT
Test Drive: Honda Civic Tourer 1.8 Executive MT The new generation of the Honda Civic, has added, for the first time ever, an estate version, which is aimed towards families ...
Test Drive: Mercedes-Benz SLK 250 AT
Test Drive: Mercedes-Benz SLK 250 AT The new generation of the Mercedes-Benz SLK has been introduced back in 2010 and production began one year later. The roadster ...
Kia Optima T-Hybrid Concept unveiled
Kia Optima T-Hybrid Concept unveiledKia’s newest creation is named the Optima T-Hybrid and it is a concept car which will be officially presented to the public in ...
Recall roundup: 850k Ford vehicles
Recall roundup: 850k Ford vehiclesFord has issued a major recall for 850,000 of its vehicles because of a problem with their airbags. A new recall has been ...
Updated Kia Rio unveiled ahead of Paris debut
Updated Kia Rio unveiled ahead of Paris debutKia has pulled the wraps off a mildly updated version of the Rio, ahead of the 2014 Paris Motor Show, where it will be officially ...
[VIDEO] Nine McLaren P1s get photo shoot at Spa
[VIDEO] Nine McLaren P1s get photo shoot at SpaNine units of the impressive McLaren P1 have gathered around Spa Francorchamps for a photo shoot. Not one but nine units of the ...
First 2015 Dodge Challenger SRT Hellcat sells for $825,000
First 2015 Dodge Challenger SRT Hellcat sells for $825,000The first unit of the 2015 Dodge Challenger SRT Hellcat has found its first owner who had to pay no less than 825,000 USD before ...
[VIDEO] Audi TT S Roadster gets weird promo
[VIDEO] Audi TT S Roadster gets weird promoAudi has released the first promotional video with the recently unveiled TT S Roadster which is also kind of bizarre. The German ...
[VIDEO] BMW M5 Jahre M5 Special Edition accelerating from 0 to 300 km/h
[VIDEO] BMW M5 Jahre M5 Special Edition accelerating from 0 to 300 km/hA new video upload with the BMW M5 Jahre M5 Special Edition is showing the impressive ride accelerating from a standstill to no ...
Lamborghini Huracan Spyder rendered
Lamborghini Huracan Spyder renderedAnother rendering with the Lamborghini Huracan Spyder has been introduced recently, previewing the newest body style of the ...
US September sales seen reaching pre-recession levels
US September sales seen reaching pre-recession levelsThe final numbers have not been tallied yet, but even as summer fades away industry observers and analysts predict last month’s ...
Asia Exclusive – McLaren 625C unveiled
Asia Exclusive – McLaren 625C unveiledMcLaren has recently introduced its first ever regionally-tailored model, the 625C, which is available exclusively on the Asian ...
2015 Chevrolet Corvette Z06 online configurator introduced
2015 Chevrolet Corvette Z06 online configurator introducedThe online configurator for the 2015 Corvette Z06 has been recently introduced by the North American based automaker ...
Report – VW’s next Phaeton flagship to return to the US
Report – VW’s next Phaeton flagship to return to the USVolkswagen enjoys a steady rise when it comes to global sales, except for parts of the Americas. But the automaker aims to revert ...
[VIDEO] Porsche 918 Spyder burns like a crisp in Canada
[VIDEO] Porsche 918 Spyder burns like a crisp in CanadaA Porsche 918 Spyder has been completely destroyed at a gas station in Canada by flames for no obvious reason. In case you were ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Honda Civic Tourer 01
Mercedes-Benz_SLK_64
Kia Optima T-Hybrid Concept 1
2015 kia rio 1
lamborghini huracan spyder render 1
McLaren 625C 1
2015 Chevrolet Corvette Z06 1
Acura RLX Sport Hybrid 1
Holden Colorado Black Edition 1
One-off Ferrari F12 SP America 1
Volkswagen Passat GTE 1
Euro-spec Cadillac ATS Coupe 1

More automotive from inautonews
The new generation of the Honda Civic, has added, for the first time ever, an estate version, which is aimed towards families who aren’t exactly into the Accord, or can’t afford it, or to young buyers, who need a larger trunk capacity than the one offered by the regular hatchback. Engine and ...
read more
Inautonews Editors Section
Test Drive: Honda Civic Tourer 1.8 Executive MT
Test Drive: Honda Civic Tourer 1.8 Executive MT The new generation of the Honda Civic, has added, for the first time ever, an estate version, which is aimed towards families who aren’t exactly ...
Test Drive: Mercedes-Benz SLK 250 AT
Test Drive: Mercedes-Benz SLK 250 AT The new generation of the Mercedes-Benz SLK has been introduced back in 2010 and production began one year later. The roadster has seen the public ...
Test Drive: Mercedes-Benz ML 250 BlueTEC 4MATIC
Test Drive: Mercedes-Benz ML 250 BlueTEC 4MATICThe off-road adventure for Mercedes started in America back in 1997 with the introduction of the original M-Class generation. The model was notable ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: 850k Ford vehiclesFord has issued a major recall for 850,000 of its vehicles because of a problem with their ... US: filling shows Takats airbag debacle could reach GMTwo companies held the headlines this year when it comes to safety concerned recalls: Japan’s ...
Safety Section