GAZ Ceases Production of Volga Siber

The Russian version of the Chrysler Sebring, dubbed Volga Siber, has ended production, according reports from the local media. The prior generation Chrysler Sebring and Dodge Stratus platform had been licensed to Russian manufacturer GAZ Group for the production of the Siber in 2008.

One source said GAZ decided to discontinue the model and use the assembly line to produce foreign-branded vehicles. Sales of the model were disappointingly low, the line having a capacity of 100,000 vehicles per year but only building 2,500 Sibers in 2009. For production of the Siber a new assembly line was brought from Chrysler's plant in the US.

Sales of the Siber begun in August 2008 – to government employees, businessmen, and the Russian bank Sberbank, with the retail sales beginning in October 2008. Due to the economic crisis in 2008 and 2009, demand of the car was very low.

The group is currently negotiating with Volkswagen, Daimler and General Motors for agreements to produce their vehicles.

However, Yelena Matveyeva, vice president of GAZ Group, said a final decision to end Siber production had not yet been made. An older model produced by the automaker, the GAZ Volga 31105, was removed from its lineup earlier this year and no further car models will be launched under this marque. The group has suspended purchasing components but is ready to resume if orders for the cars increase. On the other hand, if the company does not receive any further orders for the cars, the GAZ group will either be disbanded or start producing cars in joint ventures with foreign manufacturers.