Carmakers are abandoning the Russian market as the ruble continues its rapid decline. The Russian Ruble has dropped more than 40 percent since June, and that has destroyed profits for automakers. On top of the declining ruble, car sales are down 12 percent this year. Now GM, Audi, Jaguar and Land Rover have all stopped sales in the country.
BMW said the company could lose as much as $185 million dollars due to the ruble’s slide. According to Bloomberg, other automakers like Hyundai, Daimler, Renault and Volkswagen stand to lose even more money.
General Motors told dealers it was stopping all sales on December 16 in to "manage business risk" from the ruble’s volatility, but will deliver all vehicles that have already been purchased to the dealerships. Dealers are still free to sell cars in Russia, but no new stock can be purchased. Audi, Land Rover and Jaguar also stopped sales to stem the flow of money.
Toyota has not stopped sales, but is planning to increase prices to compensate for the ruble’s declining value.