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Russia Agrees to Aid Car Plants
Russia has agreed to give carmakers 10 billion rubles (€155 million) in subsidies to keep producing vehicles during the country's economic slump.
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Russia has agreed to give carmakers 10 billion rubles (€155 million) in subsidies to keep producing vehicles during the country's economic slump.
The program is intended to preserve jobs by paying factories to make an additional 110,000 vehicles in the current quarter, according to a government statement. The plan may be expanded with incentives to consumers to buy the resulting output.
Retail sales of passenger vehicles in Russia fell 10% in 2014. Demand this year is down another 32%, including a 38% drop last month, according to the Moscow-based Assn. of European Businesses. The government's statistics agency says vehicle output fell 17% to 130,000 units in February.
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