The decision by Faurecia, which manufactures components such as seats, interiors and exhaust systems, to partially suspend operations may disrupt Russian production by major automakers including PSA Peugeot Citroen and Ford.
The proposal is a response to concerns expressed by many foreign automakers that the ongoing decline of the Russian automotive market may leave them unable to meet their obligations to reach 75% levels of localization by 2018.
A government spokesman says besides Opel, GM will add assemblies of premium brands including Cadillac at its Belarusian JV by September. The new models will be sold in Belarus, Russia and possibly other Eastern European states.
Audi Russia chief Achim Saurer says the low- and mid-priced segments of the Russian market will bear the brunt of what is projected to be a 30% year-on-year decline in sales this year, creating opportunities for higher-end brands.
The government says it will take fluctuations in the value of the ruble and other currencies into account when determining the percentage of locally sourced components required in foreign automakers’ car-assembly operations.
The knowledge gap already could be affecting sales of advanced-technology vehicles, which last year accounted for 3.5% of the nearly 17 million cars and trucks sold in the U.S., according to WardsAuto data....More
“Logically, Cadillac is not disconnected from GM,” the longtime luxury executive says. “The way we want to organize the business in the future is that Cadillac will own the entire process, all the things that touch Cadillac.”...More