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Ford’s business in Russia is operated via a joint venture with Russian automaker Sollers. A spokeswoman for Ford in Russia said discussions were ongoing about reorganizing the Russian business as part of Ford’s new global strategy dating vintage cufflinks. “A final decision will be made in the second quarter of 2019,” the spokeswoman said. Currently, “all plants are working as normal,” she said, but declined to comment on whether the plants in the Leningrad region and Tatarstan would close..
Two additional sources – a regional government official and a manager at another Russian automobile company – said Ford was considering closing the Tatarstan plant. Ford is incurring heavy losses from its operations in Russia, two sources familiar with the situation told Reuters. It sold 53,234 vehicles in Russia last year, up 5.7 percent from 2017 but well behind 12.8 percent growth in Russia’s overall car market, and its share of the Russian market has fallen to 3 percent from 3.8 percent in 2013 dating vintage cufflinks.
Its key competitors in Russia – Avtovaz, Volkswagen, Kia, Hyundai and Toyota – are seeing their share increase, and their sales outpace the market. Both Ford and Sollers declined to comment about the financial health of the business dating vintage cufflinks. The Kuga and Explorer models are produced at a different Ford plant, also in Tatarstan. All five sources said this plant would remain open, but one of the sources said that the plant would continue producing only the Ford Transit model, a light commercial vehicle. Ford was the first international carmaker to launch vehicle assembly in Russia, opening a plant in St Petersburg in 2002..
In 2011, it set up a joint venture with Sollers, and the venture took out a 39 billion rouble ($593 million) loan from Russian bank Vnesheconombank (VEB). VEB representatives told Reuters that Ford and Sollers were considering different options to restructure their joint business, and restructuring of the loan was also under discussion dating vintage cufflinks. “VEB’s relations with Ford Sollers are of a long-term, sustainable nature,” the bank said. “There are no violations of any mutual obligations.”..
Ford and Sollers each hold a 50 percent stake, but Ford has controlled the business since buying up preferred shares dating vintage cufflinks. Sollers now has an “effective” stake of just 0.33 percent, its Chief Executive Vadim Shvetsov was quoted last month as saying by Interfax news agency. He was also quoted as saying that in his view Ford’s business in Russia would have to reorganized. “It’s already clear now that Ford is not competitive in some segments,” Interfax quoted Shvetsov as saying last month about Ford’s passenger vehicle production in Russia. “The last stress analyses are now being tallied.”..