01:59 GMT22 February 2020
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    The Opel brand will completely leave the Russian market by 2016.

    MOSCOW (Sputnik) — US automaker General Motors announced on Wednesday plans to remove the Opel brand and minimize the presence of the Chevrolet brand on the Russian market as part of its strategy to change business model in the country.

    "This change in our business model in Russia is part of our global strategy to ensure long-term sustainability in markets where we operate," a statement by the company cited GM President Dan Ammann as saying.

    The multinational automaker headquartered in Detroit said its St. Petersburg plant will halt operations by mid-2015. The company's spokeswoman later confirmed to RIA Novosti that plant workers will receive a compensation package following the closure.

    "GM will focus on the premium segment of the Russian market with Cadillac and US-built iconic Chevrolet products such as the Corvette, Camaro and Tahoe," the company said.

    GM added it expected to incur a $600-million loss in first quarter results over the scaling back of production in Russia.

    Amman said the manufacturer's decision to scale back its low-cost product presence in Russia "avoids significant investment into a market that has very challenging long-term prospects."

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    Tags:
    business, Opel, Chevrolet, General Motors (GM), United States, Russia
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