Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV

Ford scraps 3 factories, passenger car production in Russia over low demand

by

MOSCOW Mar 27, 2019 - 12:00 am GMT+3
Employees work on an assembly line at a Ford Sollers, U.S. carmaker Ford's joint venture with Russian partners, factory in Vsevolozhsk, Leningrad region, Russia July 7, 2015. (Reuters Photo)
Employees work on an assembly line at a Ford Sollers, U.S. carmaker Ford's joint venture with Russian partners, factory in Vsevolozhsk, Leningrad region, Russia July 7, 2015. (Reuters Photo)
by Mar 27, 2019 12:00 am

U.S. carmaker Ford will close three of the four factories of its Russian joint venture after deciding to stop making passenger cars in a country where car sales have slumped in recent years, the company said Wednesday.

Ford said in a statement that it has signed a preliminary agreement with its local partner Sollers on "a significant restructuring of its... joint venture in Russia, focusing exclusively on growing its commercial vehicle business moving forward."

The joint venture "will discontinue its passenger vehicle portfolio in Russia to help deliver a more competitive and sustainably profitable business going forward," Ford said.

Ford, based in the US state of Michigan, said that by the end of June this year it will close its vehicle assembly plants in the northwestern city of Saint Petersburg and the city of Naberezhnye Chelny in Tatarstan, central Russia.

It will also close an engine plant in Yelabuga in Tatarstan that opened in 2015.

Sollers will have a 51 percent stake in the restructured joint venture.

Currently, the factories produce seven models including the Ford Transit van.

Ford said that the "Russian passenger vehicle market has been under significant pressure in recent years, with recovery slower than expected and a shift to lower-priced passenger vehicle segments."

The carmaker said that this led to "underutilization" of factories and "inadequate returns on invested capital," although sales of the Ford Transit continue to grow, with a 15 percent share of the market segment.

Following a period of growth and massive investment by global carmakers, Russia's car market collapsed between 2013 and 2016, whiplashed by international sanctions over the Ukraine conflict and a crash in global oil prices.

New car sales, a key indicator of consumer confidence, fell by more than half during that period.

However, sales of new cars in Russia rose in 2018 for a second year running, but slowed in February this year.

Ford has repeatedly paused or scaled back production at the St. Petersburg plant in recent years, citing low customer demand.

  • shortlink copied
  • Last Update: Mar 27, 2019 5:02 pm
    RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    KEYWORDS
    homepage
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    No Image
    3,000 and more to come: Turkish man boasts huge jersey collection
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021