Mexican Media Brands
VW Plant in Russia Stops Production for 10 Days
Volkswagen AG has joined AvtoVAZ, Ford and General Motors in trimming production in Russia because of the country's economic slump.
#economics
Share
Volkswagen AG has joined AvtoVAZ, Ford and General Motors in trimming production in Russia because of the country's economic slump.
VW began a 10-day shutdown on Monday at its factory in Kaluga. The plant, which has capacity to make 150,000 vehicles per year, builds the VW Polo small sedan and Tiguan small crossover vehicle and two Skoda models.
VW opened a new body shop in Kaluga earlier this year and is erecting an €840 million engine plant nearby. The company insist it remains "fully committed" to the Russian market.
Last month VW's sales in Russia plunged 34% to 8,600 units, according to the Moscow-based Assn. of European Businesses. The brand's volume so far this year is 85,000 vehicles, down 18%. Skoda sales fell 5% to 6,800 units in August and are down 2% at 55,900 in the first eight months of the year.
RELATED CONTENT
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Global Car Market to Shrink for 2-3 Years
Global sales of light vehicles will decline year on year through at least 2021, predicts LMC Automotive at its annual outlook conference outside Detroit, Mich.
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.