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30 Oct, 2008 03:03

New cars stuck in limbo as crisis begins to bite

As the credit crisis spreads, car dealers are turning back deliveries of new vehicles. Hundreds of unsold cars line the road to Moscow as Renault Russia claims it has nowhere to put them. Truck drivers are threatening to block the road if the situation is

“The company has not provided anywhere for us to live – nothing. We live in our cabs like dogs in the kennel,” said one of the drivers.

So far no one, not Renault nor the Moscow or Tula governments, has lifted a finger to help. The truckers are surviving on money transfers from their wives.

At the end of their tether, they’ve signed a petition to Renault threatening to block the motorways around the capital if the situation isn't resolved within 48 hours.

Finally stung into action by media attention, Renault sales arm Avtoframos has responded but is making no promises.

“I don't see how we can help but tomorrow we'll send over a man from logistics to talk to them,” a spokesperson for the company told RT.

Car sales in Russia have fallen by more than 50% in October, leaving car lots full to bursting.

Just a few months ago, manufacturers couldn't keep up with demand.

With almost half of all cars in Russia bought on credit, the disappearance of these loans is having devastating effects on the auto industry.

As the global financial crisis spreads to the public, the list of industries affected is growing every day.

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