General Motors Corp. on the background of the collapse of sales announced complete withdrawal of Russian brands Opel and mass models of the brand Chevrolet. The strategy of the US company will focus only on the promotion of premium cars for which demand falls. Work can lose about 17 thousand people – workers, management and dealers of both brands. GM plant near St. Petersburg will be conserved, reduced workers receive compensation in seven salaries.
The largest US auto giant General Motors on Wednesday announced a radical change in its business strategy in Russia. GM-owned German brand Opel completely go away from the domestic market, and Chevrolet brand will lose the most popular models.
The news of the upcoming changes in the Russian division of GM came from Detroit, where the headquarters of the corporation.
GM turns business in Russia
According to the official report of the GM, the company minimizes its presence in Russia, focusing only on the premium segment.
Thus, in Russia GM’s Cadillac brand will be only three and famous, but not very popular model Chevrolet – Corvette sports cars and Camaro, and the SUV Tahoe.
«Changing our business model in Russia is part of a global strategy to ensure the long-term success in the markets where we are present, – commented the president of GM Dan Ammann. – This solution avoids serious investment in the market with no clear long-term perspective. ”
In turn, CEO of Opel Group Karl-Thomas Neumann complained that the cars of the brand, which are collected in Russia do not have a sufficient level of localization, “and the situation on the market does not justify significant investment in improving localization”.
It is expected that the German mark completely leave the Russian market in December 2015.
Let us recall that at the end of 2014. General Motors categorically denied the rumors about the possible closure of the enterprise in St. Petersburg. Spokesman GM Sergey Lepnuhov noted that the plant near St. Petersburg are going strategically important for the company model – a Opel Astra and Chevrolet Cruze.
«From November 5, we are working in one shift, but the plant is working all right,” – said Lepnuhov “Gazeta.ru».
«GM Auto plant in St. Petersburg will stop car production in mid-2015. GM plans to mothball the plant. In addition, the contract assembly of cars in the “gas” will stop in 2015, “- said the GM on Wednesday. Today it became known that in early March were collected last Opel and Chevrolet cars and Kaliningrad plant “Avtotor”.
A large assembly plant in Shushary was one of the first such facilities in Russia – it effective from the end of 2008. In its construction was invested $ 300 million. Until recently, the plant collected in the full cycle of Chevrolet Cruze and Opel Astra. SKD method of plant assembles Chevrolet TrailBlazer, as well as several models of Cadillac. In this case, the assembly of the two models in the full cycle will be terminated before the end of the week.
In the GM promised to fulfill all obligations to the Russian buyers two Chevrolet and Opel. In the “heavy work” with its dealer network, the company will determine the next steps that will ensure the fulfillment of obligations to owners of vehicles for future years.
«We can assure our customers that we will continue to perform warranty and supply of spare parts and service. We want to thank our customers for their loyalty and dealer brands Opel and Chevrolet », – said Karl-Thomas Neumann.
He acknowledged that the loss of GM in Russia hinder the company for the first time in ten years to make European business profitable corporations.
«We had to take drastic measures in Russia to protect our business. We reaffirm our goal to return profitability European business GM in 2016 and will adhere to our long-term objectives set out in the strategy DRIVE! 2022, “- he said. According to this strategy, by the end of 2022 GM plans to increase its European market share to 8% and 5% to reach profitability.
Radical reduction of the presence of GM in Russia will require spending of $ 600 million, and in the first quarter of 2015. The money will be used to stimulate sales, dealer network transformation, to cancel the contract and to cover the costs associated with reducing staff.
In this case, a joint venture between GM-AVTOVAZ will continue to produce and sell car Chevrolet NIVA current generation. However, the development of an updated version, as it became known recently been suspended.
In the future, GM expects to significantly improve the position of its third brand Cadillac.
«Growth in Russia brand Cadillac, global premium brand GM, will be driven by a large number of prime new models, which will take place over the next few years”, – noted in the company.
The reaction of the authorities of St. Petersburg
The situation with the closure of the plant in Shushary on Wednesday commented on the authorities of St. Petersburg.
The Governor Georgy Poltavchenko ordered the city to monitor the employment situation of employees of the plant, which in the near future is waiting for the reduction.
«Governor instructed the head of the Committee on Labor and Employment Dmitry Cherneyko to bring the situation under control: obviously, will be announced reduction. No matter how the situation developed, the government hopes that the reduction will take place within the existing legislation “,” – said to “Interfax” press secretary Poltavchenko Andrew KIBIT.
According to him, the city opened about 55 thousand. Jobs, 80% of whom are vacancies in the workplace. Authorities believe that the employees of the plant will be able to find another job.
«Government and the Governor know about the decision of General Motors. We understand that it is taken because of certain economic difficulties. The level of sales “Chevrolet” and “Opel” did not suit the company sold they are not very good. In 2014, the plant announced the four simple – it proves that there were difficulties in the realization of production “, – said KIBIT.
He said that the other actors in the vicinity of St. Petersburg auto plants not only do not plan to stop the conveyor, but also increasing their production volumes.
GM workers demand salaries 18
In the Russian office of GM reported that reduce working, ready to leave at sogalsheniyu parties receive compensation in seven salaries. Meanwhile, the workers themselves will do more.
A member of the board of the Interregional Trade Union of Autoworkers (MPRA) Peter DEBATE told “Gazeta.ru” that the organizations believe that this amount is not enough and hope to get to 18 salaries.
According to the MPRA, depending on the qualifying grid at the enterprise level salaries range from 30 thous. rubles to 50 thousand. rubles.
«Until March 30-31 at the factory workers have time to think and say about his decision – to take seven salaries and leave, or to refuse to quit the procedure and the official abbreviations
– told the debate. – In the current situation, it would be advantageous to the latter option, in this case provided retraining of all workers demanded professions. The final and official decision will be announced after the meeting of union members. Currently, the plant is already. ”
According to a member of the trade union, to find a job in the automotive cluster in the region is now virtually impossible.
«Nissan stands up to March 31, MAN, Scania also do not take on Ford and say nothing, so now the workers will have to find at least some work,
– told the debate. – So 7 salaries in the current inflation rate – is not social responsibility and support, and sending into poverty. And how are the poor workers will boost the economy? This anti-social actions. According to the norms of the LC RF employer should notify us within 3 months before the formal reduction, but this did not happen, no papers, we have not yet received. ”
GM plant recently worked intermittently. In October 2014, the company moved to work in one shift. Even before it was announced to postpone commissioning of new facilities – this year, GM had planned to increase the maximum capacity of the plant to 98 thousand. Up to 230 thousand cars a year.. At the same time reduce the plant began last year – before they start in Shushary worked about 2 thousand. Man.
Dealers preparing for billions in losses
Vice-President of the Russian Dealers Association (ROAD) estimated the total losses of individual investors in more than $ 0.5 billion.
«Today I talked with various dealers and distributors for single-brand an event – it’s a real disaster – says Petrenko” Gazeta.ru “. – In Russia, now employs about 160 dealers GM, it turns out, no work will be about 16 thousand. People, including senior managers, who are accustomed to getting a high salary. And no one will compensate them for any seven salaries. Investments in the construction and arrangement of each dealer center cost about 2.5-3 million. Hence, the total investment of private investors reached $ 0.5 billion.
This is just unprecedented for Russia and all over the collective lawsuit against the company’s GM. In world practice, such were the case, so BMW has already paid compensation to its dealers in China.
And ROAD will be that organization which will raise these issues with GM ».
According to Petrenko until all dealers are at a complete loss, but no official papers from GM it has been reported.
«So far, only held a teleconference, it was announced his departure from Russia, dealers were not even allowed to ask questions, – said the representative ROAD. – We are preparing for a series of bankruptcies and no one knows what will happen, what will happen to the drains. ”
Care Opel could trigger a chain reaction
The head of the analytical department of FC AMarkets Artem Deev believes that the withdrawal of Russian Opel will be long-term.
«Care General Motors to mass market, of course, is a shock – says Deev” Gazeta.ru “. – But in February the sale of Opel and Chevrolet dropped by 86% and 74% respectively, which basically puts the product among the leaders in terms of antireytinga sales slump. Last year, GM has repeatedly resorted to the suspension of production facilities located in Kaliningrad and St Petersburg. The decision to leave the Russian market will cost the company dearly, so it is obvious that care Opel and Chevrolet models mass of Russia will not be short-term and would not be waiting in nature. ”
The expert believes that large corporations have ceased to believe in the recovery of the automotive market in the medium term.
«The move could trigger a chain reaction among companies with a low level of localization of production – says Deev” Gazeta.ru “. – Who will be next is uncertain, since the evaluation of risks in different companies held in different ways. Pay attention to the manufacturers be tailored to the budget segment with a low level of localization. The latter makes products manufactured using SKD, very vulnerable as a result of increased volatility in the foreign exchange roar. ”
In turn, Director of Development auto-dealer.ru Oleg Datsko believes that one of the reasons for withdrawal from the market of the brand became political circumstances.
«American companies compared with Korean and European made very little investment in Russia, – says Datsko” Gazeta.ru “. – It has been more talk than actual cases. GM minimally present in the market with North American brands, the same Cadillac, which was sold a tiny amount. But it is a very good position he held with Opel. Therefore, such a move was unexpected. If it had been completely phased out the production of Cadillac, would be more logical. With all Chevrolet also quite unexpectedly.
This is more like a global political solution.
It’s no secret that the US government met with businessmen and tell them your vision of the future. It is not so dramatically reduced the market to close plants and leave. Yes, the market decline to 1.35 million units to 1.5 million seriously, but these figures we have seen in previous crisis years, so it would be possible to stay. ”
Prices for used Opel and Chevrolet will go down
The expert is confident that the problems with warranty Opel will not arise, however, believes that the secondary market cars significantly lost in the price.
«Worry have those who will continue to sell Opel in the secondary market, the prices of cars will go down – says Datsko. – In terms of service and spare parts, experience is not necessary. Those dealers who will not sell new cars of these brands will serve already sold. Earnings they receive it from that direction. Concern is also interested in it, besides he has written in the contract obligations to customers. ” 
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