Suzuki has reportedly suspended plans to build a factory near St Petersburg due to the downturn in demand in Russia’s vehicle market.
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“After having studied the market, the sales dynamic, the company took a decision to suspend … the project,” an unnamed official from the economic development ministry was quoted as saying by the RIA Novosti news agency.
Suzuki signed a deal with Russia in 2007 to build a plant by 2009 that would produce 30,000 cars a year.
Initially, the carmaker planned to launch the plant in July-December 2009, but the launch was then postponed till 2010 due to problems at the construction site.
The 3bn rouble plant, originally to be constructed in the city’s Shushary-2 industrial area, has run into complications with Suzuki forced to find additional funds to excavate peat discovered on the construction site.
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By GlobalDataWhile car firms in Russia have entered difficulties this year with the collapse of the market, analysts have noted that few OEMs have cancelled or delayed projects so far. This week saw a new plant for Nissan inaugurated in St Petersburg.
