Ford to Set Up New JV in Russia

As part of the plan announced on Tuesday to increase its sale by at least 50 percent until the end of the decade, American manufacturer Ford said today that it has entered an agreement with Sollers that will lead to the creation of a joint venture in Russia.

The new company, Ford Sollers, which will be equally owned by the two partners, will be in charge with the production of several Ford vehicles for the local market, passenger and commercial, including the Ford Transit. Production lines for the Ford vehicles are expected to start rolling later this year.

Ford Sollers will also take control of the operations conducted in Russia by Ford, including the plant in Vsevolozhsk, which builds the Ford Focus and Ford Mondeo. The group will also comprise the Sollers facilities in the Republic of Tatarstan.

Aside for the manufacturing operations, the joint venture will also be in charge with the import and distribution of Ford brand products, parts and accessories in Russia. It will manufacture engines, operate a stamping facility and do research and development work.

“This is an historic day for the Ford brand in Russia,” said Stephen Odell, Ford of Europe CEO. “Together with our friends and partners at Sollers, we have established the new Ford Sollers business with the clear objective of providing our customers with more Ford products and increased service in the Russian market.

“Russia is set to become Europe's largest market for new vehicles by mid-decade and provides the Ford brand a huge growth opportunity. Ford Sollers will help to build the Ford brand in Russia and support profitable growth, while also strengthening the Russian automotive industry and its local supply base,” said Odell.