General Motors has temporarily suspended sales of new vehicles to its dealerships in Russia, adjusted prices, and scaled production down to one shift at its plant in St. Petersburg. The steps are a result of GM’s desire to manage its business risk spurred by the volatility of the country’s currency, the Russian rouble.
Over the last several weeks, the rouble saw a steep drop in value due to slumping oil prices and sanctions imposed by the U.S. and Europe over Russia’s involvement in the Ukraine. Just last week, the currency fell as much as 20 percent in value against the U.S. dollar; since the start of the year, it has lost about half of its value.
According to Forbes, the automaker will deliver sold Chevrolet, Opel, and Cadillac vehicles at the agreed-price.
GM isn’t the only automaker to take action in the face of an unstable rouble. Last week, Volkswagen Auto Group’s Audi has announced that it has postponed vehicle deliveries to dealers in Russia, while BMW is routing inventory destined for Russian showrooms to other markets in Europe.
Earlier this decade, analysts expected Russia to overtake Germany as Europe’s biggest auto market. This, however, has yet to happen, and the country’s new car registrations are down 11.6 percent so far in 2014. For GM, the Russian market has consistently ranked in the top 10 by volume, and a drop in sales in the country will likely have negative effects on its sales volume, revenue, and profitability.
Comments
Take that Dobby Putin.
No Sonics for you!
That’s Aveos, sonny.
But on a more serious note: I currently live in Belgium and my business takes me to Russia and Ukraine. Not often. But often enough.
What I’ve come to realize is that the U.S. is playing a dangerous game here. The economic climate that Obama and company have created for Russia is terrible… and it’s not because Obama cares about Ukraine. It’s because he wants to put them weapons on Ukky soil and point them at RUS. And so we are witnessing the start of WW3 here.
We stopped calling them Aveos here a long time ago for good reason.
As for the dangerous game who was the first one who invaded or supported the rebels in the Ukraine? Or is the rest of the world just to sit and let Putin do what ever he damn pleases. Next it could be Belgium.
Much of this could have been prevented if Obama had not been stupid with Clinton and do the reset of relations. Now they are playing at a disadvantage.
The ones really doing Putin harm is the Saudis as they are the ones letting oil get cheap and damaging the Russian economy that has little else to fall back on.
If he pulls back the oil prices will return back to their past levels and it all goes away.
At this point you have one leader who is not playing fair and another who really is a rookie at foreign relations.
We here are just holding on and praying in 2 years we will have someone here that has a clue on how to deal with these issues overseas. If not Europe is in for a world of hurt I fear.
By the way WW III started a long time ago economically. It has been going on for a while. It is being fought with funds based on oil not bullets or bombs. And a we have just seen it will also be fought electronically.
the way I see it too is Putin may have to fear those within as he has a lot more enemies internally than past Russian leaders. Too many money people there are not going to put up with the losses for ever.
You really need to see if from North america. If putin is not contained he will just walk through all of Europe than look at taking Us on. You might not like it but we are protecting ourselves by keeping your problems over there . If we had confidence in you we would not need to do this
Wow. Nothing could actually be further from reality. This is like fear-mongering to the extreme and doesn’t actually make sense if you do some research.
Again, the only reason that Russia is in the Ukraine is to stop violence against Russian citizens, of which there are many dating back to the days of the Soviet Union.
There is no reason to “contain” anyone or anything. And Russia doesn’t have a best interest in doing anything with Ukraine that’s along the lines of what you are suggesting (take over, etc). There is nothing in the country (wealth, natural resources, etc.) for Russia to want.
I sincerely hope you made your comment as a joke. Because it’s that kind of uninformed, downright war-inspiring thinking that will spur WW3.
He was there for the sea port.
He needed and wanted sea access and he got it by force. Now to protect it he wants the rest of the country.
If he would stop acting like a Soviet then he may have gotten somewhere with this much more peacefully even with support of the others in Europe and America. If he had given them something for access I am sure a joint port could have been used.
Scott,
Putin was forced into Ukraine because of the people you call “rebels”. These rebels are from the Western Ukraine. They should just be called fascists, since they violently overthrew the existing Ukrainian government and brutally hurt or murder people who are of Russian decent who reside in the Ukraine.
The rebels had no election or democratic process, instead taking over power with a violent, non-democratic process. The reason Russia deployed its Ukraine-based military forces and then sent reinforcement is to stop the violence by the fascist militant forces.
Yet Obama supports them wholeheartedly and places sanctions on Russia for trying to protect its (and other Ukrainian) people. So much for the U.S. and the unwavering belief in the democratic process.
If you follow the geo-political world, you would realize that the last thing on the mind of Russian leadership is to take anything or anyone over, as you seem to imply. They have enough to deal with in their country alone.
And these meaningless sanctions don’t help. But what do I know? I just advise businesses on geo political strategy… for a living.
PS: edited this comment. The original sounded overly dick(ish). Sorry.
Just like Hitler was forced into Poland and other parts of Europe. Add to this the support Putin has put behind many of the foul folks in the Middle East like Iran and Syria.
Where America is to blame is to have opened the door by removing the NATO missiles from Poland and the making an even greater mess of the Middle East by supporting the Arab Spring with no clue that what it was leading to no matter the cried for them to resist.
Our next blunder will be Cuba where things will not improve for the people who live there as long as the Castro’s are in control. If they open the boarders as they claim they will few will return back.
Right now we have a inept leader and policy in America and a aggressive leader in Russia that is just wanting to take advantage of it and Europe. Putin knows Russia has only two things Oil and missiles and he is trying to dial it up as a major world power again with only those two things as he got left behind economically by the US and China.
Putin is desperate and the problem is he is showing signs of instability that are troubling.
What I just outlined is not my opinion but what Gorbachev has pretty much outlined in his assessment. He is one of the few Russian leaders that got it. Too bad he is not in power today as he is one of the few people that fully understood things as they were.
In the mean time the fight for world dominance is being fought economically and that is being mostly waged by America and China with Russia being left behind. America at this point could remove the sanctions but as long as oil production remand high the price of oil will remain low.
Lower oil cost kills Russia and as you are seeing now boost the American Economy. As of now the Saudi Royal family is holding the keys here to who wins and losses as they do not want Iran to gain any more power for fear of their own leadership.
Here in America we are holding on and hoping that we can get a fit leader for global issues in the next election.
I am sorry but Putin is not a sympathetic man and is bent on returning Russia back to the old ways as he knows little else.
Scott, you have no idea what’s going on in reality, the only thing you know is what they tell you via media, have you heard of things like info wars, propaganda, geo-political war, etc.? Or you don’t fully understand these things? I know people who were and often go to eastern Ukraine that tell me what’s happening on the ground there. This is a direct source ( not media). I know folks who live and lived in Crimea, and they told me what happened there in March of 2014. Because I know few languages, I Have privilege to learn about this situation via international news (hear the story from both sides) so I have a pretty good idea about what’s going on! And if you were paying attention about what’s going on in Syria and Middle East, this is somewhat connected. The drop of oil is not a coincidence. And Putin has no interest in taking over Europe and/or US. He has no reason nor power to do so. Oh and China is actually helping Russia, ruble actually bottomed out at about 150% compare to dollar, and it’s about 80% now thanks to China!
Fred there is always more than what is reported going on. I to deal with trade globally including places like Russia to the Middle East and I get many stories that go unreported so I am not entirely in the blind.
Both sides are far from boy scouts and it comes down to who is in the best interest from where you are from or where you live. At this point living in America the Putin side of the story is not in our best interest or the interest of global stability for most capitalistic countries.
Like I said the Saudis are helping the price drop on oil I feel to help the Dollar and to hurt Putin as he has no interest in them and only in those who do not like the ruling family. The house of Saud is divided and few people globally understand this. The ruling part of the family is working with Egypt and the United States to help them control the region that is in favor of them. Russia, Iran and Syria had no love for them and even less now. Once Iraq goes operational with Nukes or something happens in Pakistan it will be a game changer and could be some horrid times.
China is playing who ever they can and using many puppets like N Korea and others to do their work. The Sony break in was not N Korea it was done with help from China a they have the ability. What better way to test it than give it to the nut bag in N Korea to try.
the bottom line Putin is wanting to return Russia to a Super Power it once was and feared. He feels disrespected now and is of the old school of rule. Now he is hurting for money he will not back down and I fear he may strike in some way to get his point across.
He is pressing the buttons not just of the USA but Also most NATO countries.
This whole thing would be mute if Obama had just left the NATO Missiles in Poland as they were.
A ruler with any real world comprehension would try to work with Putin with a firm but benevolent hand. You give him a place to speak and work and try to help his country economically be more than just a country that pumps stuff out of the ground. They have a large work force that many industries would use if they had a stable and trusted government.
If Russia would normalize and go more capitalistic they could go a long way but with things as they are and as difficult as it is to do things there with any reassurance than he will struggle.
Putin put all his chips on 7 and spun the wheel. If it does not land on 7 I suspect he may toss the table.
In the mean time the people of America need to wake up and realize they need to elect a leader who has a clue on global issues and hold a place of firmness that benefits NATO and the trusted countries. As of now and the weak posture of America few trust us.
In the past like in WW II we were strong enough to help but if we can not help who will? There is no one behind us to hold up our friends if they are in trouble and sadly many know that.
I agree Putin has no interest of taking over Europe and America. What he does want is a Soviet like Russia that has the power to control and call the shots of other countries and he wants to hold other in fear of them. This is how they once were and he wants to return to this place again. Gorbachev spelled this out in his interview clearly.
But Putin’s problem is this is a economic world now. It is more like playing Monopoly and he has the least money now and no hotels.
As for China they are taking in a lot of money but they are on a bubble and many wonder how long it will last or if it will burst. Many of the cities they have newly built lie empty and there is a risk of economic collapse if they do not manage it properly. If this happens we all will hurt.
We could go on about all the little things and big things also in play. ISIS is a major problem and we have yet to see just how powerful they are. They have money, time and they are smart. If and when they make their move it will be some tough times globally. They are in for the long game not the short game and we need to prepare and get out intelligence back on target vs. this oh we water boarded someone or smacked some terrorist in the belly. In times like this even good people will have to do some bad things as a matter of survival. Fighting to win is not always gallant or fair.
Scott, I agree with some thingss you say. US been enjoying to be sole super power for about a quarter of century now, and seems like nothing major happened since that time, we in US are not threatened by a nuclear attack, and everybody was happy. But US and NATO don’t just stop there, while Russia was weak, US and Neto advanced to the east and came to Russian borders. So in this case what did Putin had to do? What would you do if you were in his shoes? Of coarse he feels that he got disrespected and will do everything in his power to stand his country’s interest. And this could drag more countries in like China, or maybe BRICS will oppose NATO. Do you want this to happen? I certainly don’t! So when small countries get bullied by US, it’s totally fine and that’s the way it should be, and when Russia tries to stand up for their interest we need to hurt it so bad so it won’t be able to get up anytime soon? Because we are afraid that it’ll be a threat to us? Russia is not Libya and we don’t want a ww3.
First thing you need to do is stop painting Putin as a Victim. He put himself in this place.
Putin is a nothing but an Ex Soviet KGB thug and only know how to rule via intimidation and force. He is not a diplomat in anyway, He puts out all these fake photo ops that are so funny they it is ridicules. At least Carter fakes his average guy with a fake Suitcase he carried that we never knew until a few years ago was empty.
We did not move to the east to gain ground or much advantage in anything. We can hit Russia from anywhere and did not need Poland to do it. We did it to protect the areas set free from the Soviet collapse and make sure they do not come back to retake their ground.
Poland has been a great friend and loyal. I am embarrassed how American has treated them in the last few years and left them to fend for themselves. Right now we are in the east to prevent the next past Soviet area from becoming the next Ukraine.
Putin knows we are not going to attack him and we are not going to invade him. If he thinks differently then he had better do his home work.
It used to be Russia was a Power equal as it was how many Nukes you had determined the power ranking. Today that is no longer in play as so many people have them today. Now it is economics.
The fact is what keep most people from using the Nukes is the fact the Economic system will collapse and take all with it even the first attacker. So today it is the economics that hold the key to who calls the shots.
The wild card is if one of the smaller rouge countries take control and attack as they have nothing to lose.
Right now if Putin was dealt into the game he needs to learn a little diplomacy and start working on building his countries economic base on things more than just oil. Just the money he is spending going to the Ukraine is going to strain his economy just as Afghanistan did with even less results.
He also has a major Radical Muslim issue to the east he has to deal with also his organized crime is strong enough to be a threat to even him.
The man has a lot on his plate.
But to paint him as being a victim here I would not go that far. The man need to learn to play well with others or he never will get anywhere. The bully posture no longer works with investors. Hence the Pull out of many companies.
Sorry buddy, but you don’t see the real big picture here. And I wonder how you know Putin so well? Oh it’s the media! I Don’t think that he is anywhere near an angel, no politition is! The sad part about this hole thing is they treat us like dogs, when they give an order, we kill each other like animals.
Read up on his history bud. Even the Russian side is not flattering, No media needed.
No matter how you spin it he is a thug and a bully and knows nothing else.
Do you think he could negotiate or be diplomatic as Gorbachev?
I am sorry he may have fooled you but he is anything but a sympathetic figure.
Also I an not fully fed by the media so you can drop that story line. If I were I would not also understand that Iran is a mess because the majority of the people that live there love America but their government hates us. We already left them down when they tried to confront the government there and we did not move to back them up.
Many of these governments are run by a minority controlling a majority.
You can sing a sad song for Vladimir all you like but his actions will betray you. Trust me.
That is funny, you only look from one point of view, Gorbachev is a good guy for US because he knocked down the Berlin wall and destroyed the Soviet Union. Most Russians don’t think he was a good guy! So Putin is a thug based on what? How are other diplomats are not thugs? I’ve came across of the stats when Putin came to power and what he inherited and what he made of that country, the numbers are astounding! And most Russians in Russia love him. Unlike Obama here, Putin has really high rating in Russia.
I’ve never cared about Putin and what he does, until he became infamous in the west, so I’ve reaserched and it appears to me that he is actually doing something right for his country to get so much attention! It’s not who he is, it’s what they make him of in the west! And it doesn’t matter who would be a president in Russia, if he stand up for the county’s interest, he will never be liked in the west.
I hear your position on Putin on American media all the time, I’ve also seen a whole “documentary” on him. so I can’t blame your uninformed and misinformed knowledge.