Chevrolet Niva Concept - 1

Amid the Russian Financial Crisis which resulted in the collapse of the Ruble value, General Motors has announced some drastic changes in its business model in the troubled nation.

“This change in our business model in Russia is part of our global strategy to ensure long-term sustainability in markets where we operate. This decision avoids significant investment into a market that has very challenging long-term prospects.” said GM President Dan Ammann.

The changes include Opel’s exit from Russia by the end of this year and Chevrolet will minimise its presence, concentrating only on its premium models like the Corvette, Camaro and Tahoe.

“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.” said Opel Group CEO Karl-Thomas Neumann.

GM also said that its auto plant in St. Petersburg will halt production by the middle of this year and be put on idle, while contract assembly at GAZ (Gorkovsky Avtomobilny Zavod) will be discontinued.

However, the GM-AVTOVAZ joint venture is said to continue producing the Chevrolet Niva and Cadillac to be set up for growth and prepares for numerous product introductions.

“We can assure our customers that we will continue to provide warranty, parts and services for their Chevrolet and Opel vehicles. We want to thank our customers and dealers for their loyalty to the Chevrolet and Opel brands,” Neumann added.

 



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