The Russian ruble is in a collapse, having lost more than 40 percent of its value since June. In response, General Motors, Jaguar Land Rover, and Audi have all decided to temporarily halt sales in Russia to wait for more stable times, Automotive News reports.
As of Tuesday, GM has suspended sales to its dealerships in Russia to "manage its business risk." Once any outstanding Chevrolet, Opel, or Cadillac purchases have been delivered, GM will freeze sales until an undetermined date. Jaguar Land Rover has frozen transactions until December 19th.
Audi halted Russian sales on December 16th, and will temporarily shutter its factory in Kaluga 90 miles outside of Moscow for the annual winter holiday. The automaker will resume sales once a revised pricing structure has been established for the Russian market. Toyota will increase vehicle prices in Russia to counteract the market changes, though the company currently has no plans to halt Russian sales.
In the past few weeks, some Russian customers have gone on automotive buying sprees, converting cash holdings into tangible, drivable goods, Automotive News reports. The sales boom temporarily bolstered automakers, but the dropping value of the ruble soon cut into manufacturers' profit margins.
If the ruble continues to slide, this could be a very cold winter for car dealers and buyers alike.
from Car and Driver Blog http://ift.tt/nSHy27
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