GM cuts output in Russia as demand shrinks

Chicago Tribune
January 28, 2009
AUTO

U.S. car giant General Motors Corp. said Tuesday it is cutting production in Russia as demand declines in a market only recently described as potentially the largest in Europe.

The cuts affect GM's new plant outside St. Petersburg and its venture with Russian manufacturer AvtoVAZ in Togliatti. GM's Chevrolet is the best-selling foreign brand in Russia.

In St. Petersburg, GM will slash the working week to three days after restarting the assembly line on Feb. 9 following repeated shutdowns, company spokesman Sergei Lepnukhov said.

The production cuts in Russia come as GM cuts 2,000 jobs at two U.S. plants and halts production for several weeks at nine other U.S. factories. The U.S. car industry is facing the worst sales slump in 26 years, according to a Jan. 27 AP report in the Chicago Tribune.

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