Ford to Cut Mondeo and Focus Production in Russia
According to Autonews, Ford is now considering cutting production at its Russian production facility, citing the over-discussed economic recession as the reason. However, the cost-cutting measures are still in early stages as the union at the plant has already issued a statement protesting the schedule.
"As we forecast continuing overall declines in sales of new cars on the Russian market, Ford ... is proposing to cut the work week to four days, as we did at our European plants," Ford spokeswoman Yekaterina Kulinenko was quoted as saying by Autonews. However, "there has been no order yet," she said, explaining that such a cost-cutting campaign depends on several factors.
On the other hand, union representatives have already expressed their disapproval towards a potential work week cut and calls government officials to investigate the current situation at the plant.
"The union committee believes the company is conducting its business in bad faith in the financial crisis by imposing a partial work week, and (the union) retains the right to appeal to the regional government ... to investigate the situation at the plant," the union said.
Meanwhile, government officials and Vladimir Putin himself hinted that foreign automakers who are producing cars in Russia could be eligible for state funds, but refused to provide too many details on the matter.
Ford's Russian facility was initially expected to provide 100,000 units of the Focus and 25,000 units Mondeos. However, new car sales dramatically fell in Russia by around 36 percent, with 252,314 units sold in January and February.