GM all but pulls out of Russia, even as Ford pumps up the volume

Southfield, Michigan

A FEW years ago, it would have been unthinkable that General Motors Co (GM) would all but pull out of a major car market, especially if rival Ford Motor Co vowed to stay in.

That is exactly what is happening in Russia, where GM said on Wednesday that it would idle a plant in St Petersburg and halt sales of its Opel brand and most Chevrolet models. Meanwhile, Ford continues to invest. Car sales in Russia fell 10 per cent last year and declines have accelerated in 2015 amid growing tensions over President Vladimir Putin's annexation of Crimea from Ukraine.

"While GM still plans to have some presence in the country, their go-to-market strategy will be decidedly more high-end and de-emphasise the mass volume opportunity," Joseph Spak, an analyst at RBC Capital Markets, said in a note to clients. "This is in stark contrast to Ford which has similarly acknowl…