Three Automakers Shut Down Sales in Russia after Ruble Declines

The ruble's more than 40 percent drop in value poses issues for automakers as Russians buy up cars to invest their savings into something concrete.

In response, General Motors, Audi and Jaguar Land Rover have stopped selling cars in the country altogether, taking a break in the hopes that the market will stabilize, Bloomberg News reported.

Because the price of oil has declined, affecting a big source of revenue for the Russian government, the ruble has lost almost half of its value against the American dollar.

"In view of the volatility of ruble exchange rate and with the aim to manage its business risk, GM Russia has decided to temporarily suspend wholesaling of vehicles to its dealers in Russia as of Dec. 16," GM's European division said in a statement quoted by Reuters.

GM's Russian sales are greater than those of any other U.S. automaker; however, the country still accounts for just a small part of GM sales worldwide, according to CNNMoney.

In the first 11 months of the year, GM's Chevrolet, Opel and Cadillac brands have collectively sold around 170,000 cars. That figure is less than what the American automaker sells in just one month in the United States or China.

While most car companies haven't revealed their ruble exposure, BMW stands to lose 100 million euros, or $123 million, to 150 million euros in earnings this quarter. Provided the ruble's value drops by half, BMW's losses may be surpassed by automakers like Daimler AG, Volkswagen, Renault SA and Hyundai.

Munich, Bavaria-headquartered BMW began mitigating the drop of the ruble in the early summer, moving cars to more solid markets. The ruble's value has fallen more than 40 percent since June.

BMW has also been upping vehicle starting prices in Russia.

"We're considering the situation on a minute-by-minute basis," BMW spokeswoman Emily Begley told CNNMoney.

Toyota is looking to increase the price of its cars in Russia as well, but the Japanese automaker doesn't plan to stop selling in the country any time soon.