After a more than 40 percent drop in the ruble, automakers take drastic measures
As Russians look to invest in vehicles and other expensive tangiles to get away from the falling ruble, automakers don’t want to be stuck with the falling currency either. General Motors, Audi, Jaguar Land Rover, and others are taking steps to reduce losses.
According to Automotive News, the ruble has dropped more than 40 percent since June, “Russia’s biggest financial crisis since 1998.”
“In view of the volatility of rouble exchange rate and with the aim to manage its business risk, GM Russia has decided to temporarily suspend wholesaling of vehicles to its dealers inRussia as of Dec. 16,” GM’s European Opel division said.
Tata owned Jaguar Land Rover has suspended sales as of yesterday and will review the situation again tomorrow.
Audi said it is postponing deliveries and may raise prices. BMW stated its already moving inventory out of Russia and into other, more economically stable regions. It has already adjusted prices in Russia to reflect the falling value of the ruble.