Sources say CEO Bo Andersson fell out of favor with Sergey Chemezov, whose company controls one-third of the automaker, because he favored foreign parts makers over local producers with suspected links to organized...
Russian Association of Auto Dealers President Vladimir Mozhenkov says the existing dealer network is designed to sell at least 3 million cars per year. Light-vehicle sales in 2015 totaled just 1.6 million units, down...
The reorganization plan includes terminating Jeep Compass sales. The automaker delivered only 72 units in Russia last year, down 89.7% from like-2014. The CUV was hurt by a 30% price increase prompted by the tumbling...
About 600,000 B-cars were sold last year in Russia and their market share, currently at 40%, is expected to grow. Among last year’s best-selling models were the Lada Granta built by local automaker...
Shifts at Togliatti will be reduced from two to one while retaining a 5-day workweek, and reorganization of jobs will allow production-line speed to be doubled. There are no plans for layoffs; the plant will continue...
The deterioration of the market has forced the government to grant additional concessions to global automakers threatening to freeze further investment in Russian production or even quit the market, as occurred last...
Analysts forecast no more than 1.2 million new-car sales this year, down 25% from 2015, the third straight year the market declined. Some predict the market will not fully recover before 2019 or 2020.
The possible trimming of the automakers’ product lineups would exclude SUVs, consistently good sellers relative to the overall market in recession-battered Russia.