GM's Opel to exit Russia, shut down plant: Handelsblatt

[BERLIN] General Motors' Opel division will exit the plunging Russian autos market and abandon production its plant in St Petersburg by the end of the year, Handelsblatt reported on Wednesday, citing Opel Chief Executive Karl-Thomas Neumann.

Car sales are falling fast as Russia's fragile economy and weakening currency are hit by Western sanctions over the conflict in Ukraine and buyers delay making large purchases.

GM's Opel and Chevrolet brands will quit the market and cooperation with Russian carmakers will be broadly terminated, the newspaper said, citing Mr Neumann.

"We have reached the view that the perspective for the Russian market is not good over the short term and also not over the medium term to long term," the CEO was quoted by Handelsblatt as saying.

REUTERS