(MENAFN) European Opel Group announced cutting production along with around 500 jobs in Russia on the back of the weak Russian ruble and a drop in local demand, Arab News reported.
Opel said it would cut production at its plant in St. Petersburg where it builds the Opel Astra and Chevrolet Cruze compact models, to one shift per day instead of the previous two.
Production of passenger cars and commercial vehicles may decrease 14 percent this year to 2.4 million autos, declining a further 6.5 percent in 2015 to 2.24 million before rebounding in 2016.
"Demand has been in free fall recently, none of the carmakers producing in Russia will be able to escape output cuts," analyst at market research firm IHS Automotive said.
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