Auto giant Ford stops production and import of cars in Russia
The American automobile company Ford Motor Company is currently reviewing its strategy in the Russian market. The company, which owns three factories in Russia, had difficulties with the sale of products, so she decided not to continue independent business in the country. About this newspaper Kommersant Deputy Prime Minister of the Russian Government Dmitry Kozak said in an interview.
According to Kozak, Ford is going to abandon the production (release) and import into Russia of its cars. The company will focus on the light commercial vehicle (LCV) segment. The company has a highly localized product - Ford Transit vans. So the company will retain its stake in the plant in Elabuga, where Ford Explorer SUVs and Kuga crossovers are also going to be assembled. Ford’s business in Russia will be managed by the Russian partner of the American company - the Sollers group, which should receive a controlling stake in the Ford Sollers JV.
- emphasized Kozak.
It should be noted that Reuters reported earlier that Ford was going to close two plants in Russia. In Vsevolozhsk (Leningrad region) and in Naberezhnye Chelny (Republic of Tatarstan). It is there that cars are manufactured (produced). And after that, the Kommersant newspaper clarified that the production (production) and import of Ford cars in Russia will be stopped in June – July 2019.
It should be recalled that the plant in Vsevolozhsk produces (produces) Ford Focus sedans, hatchbacks and station wagons, as well as Ford Mondeo sedans, and the plant in Naberezhnye Chelny produces (manufactures) Ford Ecosport crossovers, hatchbacks and Ford Fiesta sedans. Ford became the first major automaker to open car assembly production in Russia in 2002. In 2018, Ford sold a total of 53 cars in Russia. At the same time, sales growth amounted to 234%. As a result, the share of the American company in the Russian market amounted to a modest 5,7%.
According to Kozak, Ford is going to abandon the production (release) and import into Russia of its cars. The company will focus on the light commercial vehicle (LCV) segment. The company has a highly localized product - Ford Transit vans. So the company will retain its stake in the plant in Elabuga, where Ford Explorer SUVs and Kuga crossovers are also going to be assembled. Ford’s business in Russia will be managed by the Russian partner of the American company - the Sollers group, which should receive a controlling stake in the Ford Sollers JV.
Therefore, we can say that the issue with the continued presence of the Ford brand in the Russian market was resolved in the most cost-effective manner
- emphasized Kozak.
It should be noted that Reuters reported earlier that Ford was going to close two plants in Russia. In Vsevolozhsk (Leningrad region) and in Naberezhnye Chelny (Republic of Tatarstan). It is there that cars are manufactured (produced). And after that, the Kommersant newspaper clarified that the production (production) and import of Ford cars in Russia will be stopped in June – July 2019.
It should be recalled that the plant in Vsevolozhsk produces (produces) Ford Focus sedans, hatchbacks and station wagons, as well as Ford Mondeo sedans, and the plant in Naberezhnye Chelny produces (manufactures) Ford Ecosport crossovers, hatchbacks and Ford Fiesta sedans. Ford became the first major automaker to open car assembly production in Russia in 2002. In 2018, Ford sold a total of 53 cars in Russia. At the same time, sales growth amounted to 234%. As a result, the share of the American company in the Russian market amounted to a modest 5,7%.
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