Americans are at the helm of Ford Sollers

Americans are at the helm of Ford Sollers

RusAutoNews.Com – Ford Motor Company has taken the control of the Ford Sollers partnership, following the signature of an agreement between the parties on 31 March. According to company documents, although the shares are still held 50-50% between the partners, Ford has taken the control by increasing the amount of prior stocks in its possession.

The vice president and executive director of Ford Sollers: Adil Shirinov has announced plans to increase the localisation rate to 83-85% until 2018-2019, on the other hand. As is known, Ford Sollers has committed itself before the government, to achieve a 60% localisation rate before 2018, within the frame of the industrial assembly regime agreement. Shirinov states that this ratio is not sufficient, in order for the company to maintain its competitiveness and sets the minimum level to be targeted as 70%. The current localisation rate of the three factories owned by Ford Sollers is 40%.

According to Pricewaterhousecoopers data, Ford prices have gone up by 45% since September 2014, due to the depreciation of the rouble. The first quarterly sales of the brand have fallen by 71% as a result (AEB data). The risks the manufacturers with low localisation rates are under have come to the surface with the depreciation of the rouble, as stated by sectoral analysts. Accordingly, this is one of the reasons behind GM’s closure of its Russia factory and the discontinuation of sales.

Tags: Ford Sollers