Production of foreign brand automobiles has stopped in Russia

Production of foreign brand automobiles has stopped in Russia

Izvestiya – The collapse of rouble and the falling demand have compelled the manufacturers to stop production.

According to Izvestiya, Kaluga based PSMA Rus factory has stopped production as of yesterday. The production at the factory is expected to start after the new year holidays. Vsevolozhsk Ford Sollers factory has also stopped production partially. Renault, on the other hand, has announced that although the production has been suspended at Moscow factory, the second generation Logan and Sandero are still being manufactured in Tolyatti. Renault Moscow factory will resume operations on 11 January. GM is getting ready to lay off staff, according to news. However, production continues at the factory. Kaliningrad based Avtotor is another factory, which suspended production. The factory will remain closed until the end of January, due to cleaning, maintenance and equipment assembly works, as well as the situation the market is in. Officials from Nissan, Toyota, Sollers, Derways and Hyundai plants have told the newspaper that although the production continues, the production numbers of some models are being reviewed.

The sectoral analysts state that the factories have suspended production, due to the negative sales forecast for January. Accordingly, the companies need time to set production targets for the year 2015.