Facing global financial crisis Russian car makers reduce production

Russian car makers have reined in production as the global financial crisis spills into the real economy and hits consumer demand.

GAZ, Russia's No. 2 car maker and part of billionaire Oleg Deripaska's Basic Element empire, said it would halt production of light commercial vehicle Gazel for four days to avoid a glut after demand fell by at least 10 percent. "It's all linked to our dealers' liquidity problems. They are feeling the credit shortage," GAZ Vice-President Yelena Matveyeva said, adding overall plans for the year had not yet been revised.

Kamaz will reduce truck production by 20 percent, Interfax reported. The Russian news agency also quoted sources at Russian-Dutch tyre maker Amtel-Vredestein as saying it had cut production at its Voronezh plant due to a shortage of working capital.

The crisis also strikes Russia’s steel industry and banks. Many of these companies are laying off thousands of staff.

Views:0