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Ford of Europe Afraid of Magna-Opel Deal in Russia

If the deal between Magna and Opel goes through, it might represent a serious threat to Ford's Russian operations, Ford of Europe President John Fleming said in a statement. According to preliminary plans of the Magna - Opel deal, the Canadian - Austrian partsmaker will establish a production facility in Russia and expand local operations with the help of its local partner, Sberbank.

“I look at (the Opel-Magna deal) from a perspective of how it will effect us, and I see it as a risk for us when I look at the likes of Russia,”
he was quoted as saying by Autonews.

Ford is currently the third-largest automaker in Russia and the second foreign company in terms of new car sales, with 64,943 units delivered to local customers in the first nine months of the year.

“I am not sitting here saying how unfair it is somebody got some money and we didn't because we haven't asked for it,” Fleming said. “The only thing that we do talk about is a level playing field and that's much more about requesting the European Commission to continue to look and make sure that what's happening is fair and equitable and within the laws and competition laws.”

However, this doesn't mean that Ford is opposing the deal. Chairman William Clay Ford Jr. said earlier this year that Magna - Opel will be treated as a serious competitor and the deal won't affect the supplying business at all.

"We love our competitive position globally," Ford said. "I don't think we'll have a good read (of the future) until our dealers are re-stocked," the chairman added, according to AFP. "Obviously there are still issues in the financial system but the absolute gridlock... has receded dramatically. We have a very good relationship, we have a great partnership and they have clearly said that they will respect intellectual property and we believe them."
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About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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