GM will return to Russia in case of market recovery
OREANDA-NEWS. March 30, 2015. US automaker General Motors will return to the Russian market in the case of improving market conditions, said the deputy head of the Ministry of Industry and Trade of the Russian Federation, Andrey Dutov.
"They said that they would preserve plant in St. Petersburg, and if they see a trend in the market, they return quietly," - said the deputy official, who was cited by the agency "Interfax". According to the official, the company informed the Ministry of Industry and Trade about its intention to return to the market.
Mr.Dutov added that GM commented the stop of production as "a purely economic decision”. "This is logical because of declining market", - said the official, by noting that GM has agreed to pay compensation in accordance with Russian law.
Meanwhile, about 150 people at the GM plant in St. Petersburg were already fired by agreement of the parties, said the chairman of the city committee on labor and employment of St. Petersburg, Dmitry Cherneyko. GM has announced on March 18th on the withdrawal of brand Opel from the Russian market and that by mid-2015 it will preserve the plant in St. Petersburg. The representative of "GM Auto" reported that employees of the plant will be offered the compensation packages of seven salaries.
"Yesterday it was notified about 150 people laid off by mutual agreement, while from the number of managerial staff. All payments are made to them in accordance with the law", - said Mr.Cherneyko, cited by the agency “Prime”.
The reduction will affect up to 800 people and it "will go in waves”, added Mr.Cherneyko. "So, it will be reduced about 500 people. I think they will do it per a week or two. Then 150 people will continue to work out the certain production program and some people remain permanently there to bring the plant in conservation, to serve canned production", - said the official.
Mr.Cherneyko noted that the majority of employees agree to the terms of reduction, he also has no doubt that the people will be employed. "There is no something tragic there. Moreover, there is a demand for most people of technical staff. Concern General Motors I have no doubt that we will provide with work all these people by summer"- he said.
GM has commissioned a plant in St. Petersburg in November of 2008. The company produces models of Chevrolet Cruze, TrailBlazer, Opel Astra and several models of Cadillac.
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