Kommersant.- Ford intends to restructure its business in Europe. The company may cut down its model range and production capacity.
The loss of Ford Europe has increased by 27.6% during the third quarter of 2018 to $245 million. The company has indicated that the weak position of Ford in Russian and Turkish markets has affected the financial performance, along with the launching costs of the updated Focus.
Ford Sollers joint venture may close down one or more plants in Russia, as well as cutting down the model range. These actions may be taken within the scope of the business restructuring of Ford in Europe.
The American car manufacturer had previously announced a new strategy, in accordance with which it’s planned to leave the least profitable segments to increase profitability. The restructuring of the unprofitable European business is within these plans.
Ford may reduce its model range and plant capacities in the Russian Federation, concentrating on the production and sales of light commercial vehicles. Although the shareholders of Ford are considering several business restructuring options, it’s yet premature to talk about the closure of the enterprise. The decision should be taken during the second quarter of 2019.
According to AEB data, Ford has sold 47,500 automobiles in Russia within the January-November 2018 period, which is equivalent to a 6% year-on-year growth. However, there wasn’t any single Ford model amongst the top-25 most popular vehicles in the Russian market.
