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Reinvesting in Russia: Ford Says "Da!"

Ford Focus diesel Russia

After partnering with the Russian company Sollers for the past 5 years and investing a lot more than $1 billion into car and engine factories, Ford Motor Clients are betting on a Euro rebound and still views the beleaguered country as a long-term play.

Amid GM’s escape from Russia, Ford stuck to its game plan by spending cash on new models as well as plants in that country, presumably to avoid the catch-up situation similar to the 1 it faced within China. According to Automotive News, the commitment paid off in the very first quarter of 2016, delivering sales up through 93 percent inside a market that noticed a 17 percent decrease over the same time period.

The Russian automobile marketplace, once the second largest in Europe, is within?a steep decline due to a prolonged recession.

Exporting vehicles from Russia is also an option being stored open by Ford Sollers, thanks to the ruble’s weakness compared to other currencies.

If there’s a shortage of capacity in western Europe, it could produce a unique opportunity to boost production. This would be an optimistic development, as organization officials don’t expect the sales gain comparable to the massive first 1 / 4 jump.

Interestingly, yesterday’s Ford GT announcement incorporated a map of areas where customers could order the $450,Thousand supercar -?eagle-eyed readers will note that Russia isn’t mentioned. While an expensive halo vehicle will not give Ford the amount it needs in Spain, an argument could be created that seeing GTs on the streets of Moscow would raise the brand’s profile.

Ford started producing five models in Spain last year, including the Mondeo and Transit. The company also makes the Kuga and EcoSport SUVs in Russia.

[Image: Petr Magera/Flickr (CC BY 2.Zero)]

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