12:41 pm, December 19, 2014
SEVERAL car manufacturers have suspended vehicle deliveries to dealerships in Russia after a sharp decline in the value of the rouble.
The Russian currency has suffered because of falling oil prices and sanctions imposed by the West over the crisis in Ukraine. As a result, automakers have lost hundreds of millions of pounds.
At the start of the crisis, Russian customers put their money into high-end cars as a tangible investment.
However, the sales boom was a mixed blessing for manufacturers because the declining value of the rouble meant they were making less money from each sale.
The situation led to General Motors, Jaguar Land Rover and Audi to announce a suspension of sales this week, with JLR reportedly reviewing the situation today.
The rouble has declined in value by more than 40 per cent since June in what has become Russia’s biggest financial crisis since 1998.
Mr Cameron recently said the EU was ‘unanimous’ that sanctions imposed over Ukraine would be maintained until Russia changes its aggressive behaviour.
Autonews.com reported that BMW was at risk of losing £78 million because of the crisis, with manufacturers such as Daimler, Volkswagen, Renault and Hyundai possibly being even harder hit.
Analysts have said the situation was causing ‘major pain’ for car companies.
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