OREANDA-NEWS. The management of "GAZ Group" considered the decision of the Central Bank to reduce its key rate by one point - up to 14% from March 16th as insufficient and ineffective measure to help the Russian car market.

President of "GAZ Group", Vadim Sorokin, called the decision of the Central Bank as ineffective to decrease the key rate by one percentage point, to 14%. "Lowering of the rate of the Central Bank by only one point will have no effect to change the situation. Due to the unavailability of loans in the automotive industry it was locked investment activity throughout the supply chain from manufacturer to suppliers. Buyers cannot take advantage of loans and leases that are the main sales tool in commercial vehicles. Against this background, the lowering of rates by only one point – is a meaningless solution", - "Za rulem.RF” cited Mr.Sorokin.

The head of "GAZ Group" recalled that for the first two months of this year, car sales in Russia fell by 40%. "Investment sentiment of buyers is at zero. To stabilize the situation in mechanical engineering it is necessary to restore the rate of at least up to the level of the beginning of December 2014 - 10.5%, and for sustainable development we need to return to the level of rates at the beginning of 2014 - 6.5%. With the profitability in car industry at the level of 8-10%, the loan servicing on current bank rates – is a road to nowhere", - said Mr.Sorokin.