The automaker is cutting prices and expanding its product range in an effort to pull out of a tailspin that saw July sales drop 21.3% from like-2014 and 52% for the year’s first seven months, according to WardsAuto data.
Sources say Daimler has asked St. Petersburg Gov. Georgy Poltavchenko to provide a 125-acre site for the Mercedes-Benz assembly plant, along with associated infrastructure investment, without compensation from the automaker.
Despite the current difficulties, negotiations are expected to continue. Legal action by the dealers likely would result in the termination of service contracts by GM, potentially exposing bigger retailers with large customer bases to further losses.
Most of the new funding will be used to compensate local and global automakers for discounts given dealers in a market where, according to WardsAuto data, sales fell 29.7% year-on-year in June and were off 36.4% through the first half of the year.
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.
Without 2-step variable valve lift, the ’15 version of the Pentastar always operated in high-lift mode, consuming more fuel. FCA says the new system results in less overall pumping work, singlehandedly accounting for a fuel-economy gain of up to 2.7%....More
The combination of total LV inventory 3% above year-ago, and stocks of the strongest growing segment group increasing month-to-month, points to a fifth straight 17 million-plus SAAR in September....More