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Posts Tagged ‘russian auto news’

Automakers Worry as BRICs Start to Crumble

Largest emerging markets show signs of serious trouble.

by on Dec.08, 2015

Ford is hunkering down for the long haul in Russia while GM is cutting back its operations while the market there continues its free fall.

Facing the prospect of a collapsing local market, Ford Motor Co. is looking with increased desperation for ways to keep its Russian assembly plants busy. It hopes to avoid the same fate as rival General Motors, which has chosen to all but abandon the Russian market entirely.

The heart of the former Soviet Union has seen its car market plunge by 30% since the beginning of this year as Western sanctions have taken hold. And that’s on top of the sharp decline Russia experienced in 2014, sales now running barely half the market’s one-time peak of around 3 million vehicles a year.

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But Russia isn’t alone. In fact, only India has continued to maintain solid, positive momentum among the so-called BRIC countries — which also include Brazil, India and China — the most promising emerging markets that were supposed to deliver most of the growth for the global auto industry in the years ahead. (more…)

Rubles for Clunkers

Russia struggles to revive its own auto market.

by on Mar.10, 2010

Sales have been slow at showrooms, like Moscow's Major mega-dealer, with a quick turnaround considered unlikely.

What was once among the world’s fastest-growing car markets has struggled to avert disaster in recent months.  Now, Russian authorities hope to turn things around by borrowing an idea that’s worked in a number of other markets, including the U.S., throwing money at it.

The Russian version dwarfs America’s Cash for Clunkers program, however, and could eventually involve the investment of $20 billion over a 10-year period, with an initial $6 billion meant to yank the market out of its deep recession.

As in the U.S., that money will be used to stilulate demand for new vehicles – which plunged 49% last year – and to get off the road as many of Russia’s smoke-belching Ladas and Vazs as possible.  But some of the money will also be used to train workers and to prop up the struggling home automaker, AvtoVaz, which still holds a 30% share of the market.

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“Our end goal is to build a modern auto industry in Russia, including the entire production chain — from the steel sheet to the end product,” Prime Minister Vladimir Putin said, in a statement quoted by the Detroit Free Press.