Published on December 21st, 2014 | by Daniel Sherman Fernandez0
Russian Ruble Collapse Hurts Car Market
General Motors, Audi and Jaguar Land Rover have decided to temporarily suspend the sale of their cars in Russia this week as the Russian currency collapses. All improted cars are battling a more than 40% drop in the value of the ruble since June, Russia’s biggest financial crisis since 1998.
In recent weeks, Russian customers has been snapping up Porsches and other cars to convert their savings into something tangible. That temporary boon for the industry soon turned to a liability as the ruble’s drop ate into what the manufacturers earned from their vehicles.
GM suspended sales to dealers on Dec. 16 to “manage its business risk” in light of the volatility of the ruble, the carmaker’s Russian unit said. GM, which didn’t set a date to resume wholesale deliveries, will deliver Chevrolet, Opel and Cadillac cars that have already been purchased at the agreed-on price. Jaguar Land Rover said that it had halted sales until Dec. 19 because of the current economic situation.