Ford Sollers Restructuring, Ford Passenger Vehicle Production Ending in Russia
Ford is saying до свидания to passenger vehicle production in Russia as part of its ongoing European transformation efforts. Ford announced at the end of March that it has signed a memorandum of understanding that will result in the restructuring of its Ford Sollers joint venture and the closure of vehicle manufacturing plants in Naberezhnye Chelny and St. Petersburg and an engine plant in Elabuga.
“This represents an important step towards Ford’s target to deliver improved profitability and a more competitive business for our stakeholders,” said Steven Armstrong, president, Ford of Europe. “The new Ford Sollers structure supports Ford’s global redesign strategy to expand our leadership in commercial vehicles and to grow the business in Europe in those market segments that offer better returns on invested capital.”
New from Ford: 2019 Ford Edge brings more power with first-ever ST performance trim
Per the MOU, partner Sollers PJSC will take a 51 percent controlling interest in Ford Sollers. Sollers PJSC CEO Vadim Shvetsov says that the restructuring of the JV will help both companies to capitalize on the growth of the light commercial vehicle market — the Transit is Russia’s best-selling, non-domestic commercial vehicle with a 15 percent market share.
Though the closure of Naberezhnye Chelny and St. Petersburg this coming June effectively brings an end to Ford passenger vehicle production in Russia, Ford Sollers confirms that it will honor all warranties and service requirements for current and future owners of Ford-branded vehicles.
Ford of Europe is undertaking multiple efforts to improve profitability in the coming year, including a recently announced partnership with Volkswagen AG and the end of production for the C-MAX and Grand C-MAX in Germany.
Not Long for This World: The 2019 Ford Fiesta will be the last hurrah for the beloved subcompact in the U.S.
The News Wheel is a digital auto magazine providing readers with a fresh perspective on the latest car news. We’re located in the heart of America (Dayton, Ohio) and our goal is to deliver an entertaining and informative perspective on what’s trending in the automotive world. See more articles from The News Wheel.