GAZ has suspended production of the Volga Siber, a previous generation Chrysler Sebring sedan updated for the Russian market, local media reports said.
The Siber, built with tooling bought from Chrysler and installed with help from Magna, was said to be unprofitable due to the dollar exchange rate and local content of just 30%.
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Plant employees currently work three-day weeks for two-thirds of their normal salaries.
GAZ said recently it was in talks with ‘leading global carmakers’ about the production of new car models. The Siber assembly line can build 100,000 cars a year.
GAZ recently said it produced 178,406 vehicles in 2008, down 25% year on year.
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