The falling value of Ruble is having its worst impact on the auto manufacturing industry and General Motors Company (NYSE:GM) among other leading auto companies are cutting car deliveries in the country. The auto company has raised its car prices and halted sales in Russia to cope up with increasing losses.
There are dual factors working for the falling value of Ruble including the declining oil prices along with western sanctions over the Russian Capital. General Motors Company (NYSE:GM)’s European Opel division said,
“In view of the volatility of ruble exchange rate and with the aim to manage its business risk, GM Russia has decided to temporarily suspend wholesaling of vehicles to its dealers in Russia as of Dec. 16.”
Somewhat similar trend was noticed among other leading car manufacturers including Jaguar Land Rover and Ford Motor Company (NYSE:F). Land Rover has stopped deliveries in Russia and Ford has cut its investments in the country.
Toyota Motor Corp (ADR) (NYSE:TM) said that it will keep delivering vehicles in the country and the motor company is planning to increase car prices in accordance with the market prices. Jean-Yves Jault, Europe Spokesman for Toyota Motor Corp (ADR) (NYSE:TM), said,
“We will be forced to implement price increases to adjust to market prices but have not yet finally decided by how much or when exactly — but soon.”
Amid its decision to stop delivering cars in the country, General Motors Company (NYSE:GM) said that it will fulfill deliveries of Chevrolet, Opel, and Cadillac automobiles purchased by the customers. The company is having a keen observation over the value of ruble and more price changes are likely to follow in upcoming weeks.
The shares of General Motors Company (NYSE:GM) are trading at $31.75 with 22.31% drop in share prices year-to-date.
This article has been written by Prakash Pandey.