It was seen as the promised land.
But the air has gone out of the market because of the Ukraine crisis and sanctions.
The Russian cause for concern was noted in several areas despite the glitz and glamor during the auto show in Paris, who had a press preview on Thursday and is now open to the public for two weeks.
Sales of new cars in Russia plummeted by 26 percent in August.
Ford Europe CEO Stephen Odell , former head of Volvo Cars, said that the situation in Russia has deteriorated more than anticipated and that the forecasts on a total of 3.3 million cars this year is expected to land at almost one million fewer. The head of Fiat-Chrysler Group Sergio Marchionne sighed over the development and also at Volvo Cars there is a concern, especially as Russia is one of the supposed major markets for the new XC 90th
For several years Russia has had a exceptional growth, but last year began to decline and in recent months there has been pressed on the brake. Russians’ desire to buy has slowed down considerably due to a weaker ruble and falling real wages.
It has led to the production has been reduced at Volkswagen, Ford has resigned 1500 this year and Opel have sent home a third of workforce at the plant in St. Petersburg, reports Reuters.
The domestic producers are also suffering. Russia’s largest bilbolag, Avtovaz, best known for the production of the Lada, also has the problem that the Russians have become increasingly brand conscious are attracted more by the western name. Earlier this year, the Renault-Nissan Alliance of control and has provided funds for the development of new models.
Steve Mattin, with a history of Volvo Cars, is chief designer at Avtovaz and now works with the new CEO, Swede Bo Andersson, to change the entire brand.
The Russian president, Vladimir Putin, has been talking about banning car imports in response to Europe’s sanctions. It would benefit the domestic industry. But there is nothing that the industry wants. The development would back off, according to Steve Mattin.
– Are you alone in the market they sell so much more, but it is short-sighted. Competition is always good. It drives change, he says, adding:
– We have become so good that customers choose us over others anyway.
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