Ford estimates the cost of leaving the Russian car market as $174 million

Ford estimates the cost of leaving the Russian car market as $174 million


 

RNS.- Leaving the Russian car market will bring Ford an estimated cost of $174 million, as stated in the company report.

“Exceptional cost. Russia: $174 million” – the report says.

The company also states that the exit from the Russian market will also have a negative effect on net profit, which fell by 34% year-on-year to $1.146 billion, during the first quarter of 2019.

Ford Sollers has announced the end of car production in Russia as of July 2019 on 27 March, along with the sale of the car factories in Naberezhnye Chelny and Vsevolozhsk and the engine plant in Alabuga.

Subsequently, as told by the representative of Ford Sollers joint venture, Ford has no plans to sell foreign assembly cars in Russia. The joint venture will concentrate on the commercial vehicle market in future.