General Motors is all set to withdraw the Opel brand from Russia by the end of 2015, as reported by a German newspaper. The Russian economy has suffered quite a lot during the past year because of the dipping oil prices and economic sanctions, which were set into flow by the Western nations. The Russian Ruble has taken a dip against the American dollar, which has in turn forced the price of imported cars to rocket up.
The American automobile manufacturer will also stop the contract with Chevrolet cars in Russia. General Motors has found no real prospects in the Russian automobile market, be it in the short term or long term market. Karl-Thomas Neumann, the Opel CEO said, “We do not have the appropriate localisation level for important vehicles built in Russia, and the market environment does not justify a major investment to further localise."
It will however, keep on marketing two or three Chevrolet models in the country along with the general Cadillac models. The production of the Chevrolet Niva, which is based on Lada, will also stay on its due course as planned to be produced in 2016. The General Motors factory at St. Petersburg will also shut down on the event of its withdrawal. These events might also lead to further setback to the economy of the country going forward.
