Ford halts production in Russia of passenger vehicle
Ford Motor Co.’s joint venture in Russia will no longer manufacture passenger vehicles, the carmaker said on Wednesday, the latest in its $11 billion global restructuring effort.
Russian company Sollers will also take a majority interest in Ford Sollers, according to a federal filing. The prior ownership was split 50-50 between Ford and Sollers.
The joint venture will continue to manufacture commercial vehicles, including the Transit van.
As a result of the shift in strategy, Ford Sollers is ending production at two of the three Russian plants it operates, as well as one engine facility. The company expects to incur a pretax loss of as much as $500 million.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 11.01 | -0.06 | -0.54% |
Sales to dealerships in Russia in 2018 dipped slightly year over year to 51,000 units, while retail sales were steady. Ford had a 2.9 percent market share in the country at the end of last year.
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The Dearborn, Michigan-based firm previously halted production of heavy trucks in South America, which was expected to cost Ford as much as $460 million.