Ford Motor plans to close the plant

5 March 2019

Ford Assembly plants in Naberezhnye Chelny and Vsevolozhsk on the verge of closing

The Ford Motor strictly implements its program of business restructuring in unprofitable regions, which is considering closing two quite large plants in Russia, according to Reuters.

Under threat of closure there are three Assembly plant of Ford in Russia

According to Reuters within the Corporation and Ford discussed the possibility of closing the plant in the suburb of Saint-Petersburg Vsevolozhsk (capacity utilization 2018 – 12%), and one of the two plants Ford Sollers in Tatarstan, presumably in Naberezhnyye Chelny (former PCA plant of KAMAZ – capacity utilization in 2018, only 5%)

Welding line factory Ford Sollers Elabuga

    but the Ford plant in Yelabuga out of danger, as his download of last year was 45% – 65 thousand (including commercial models Transit), which was the best result among all Ford plants in Russia.

Assembly line of plant Ford Sollers in Naberezhnye Chelny

Manager of public relations of Ford Sollers (SP Ford PJSC "Sollers") Ekaterina Komarova yet evaded a definite answer to the question RBC about the possibility of closure of factories in Russia. In her words: "Shareholders are reviewing their plans, considering a few options. All decisions will be taken in the second quarter of this year. At the moment all the plants are operating normally".

Welding line plant Ford Motor in Vsevolozhsk

The head of the European branch of Ford Steven Armstrong earlier this year warned that U.S. automakers can't manage to get Russia on key performance indicators, so that to achieve the desired from the ocean of effectiveness required "significant changes", including the reduction of thousands of employees and even the closure of individual businesses.

Next, the press service of the Ford Motor on 10 January announced that it is preparing for the strategic review of the terms of the restructuring of Ford Sollers. At the same time called period final decision – the second quarter of 2019.

In turn, the representative of Ford Sollers also confirmed that Russian and American partners are reviewing their strategic plans in respect of the joint venture. According to him, the shareholders, do, analyze several options to restructure its business in Russia. The Ministry of industry and trade of the Russian Federation also confirms the awareness of such negotiations between partners about the future of Ford Sollers, stressing that any decisions in relation to the collapse of production capacity, the sequestration of the product line and downsizing has not worked.

Paint shop of the Ford Motor plant in Vsevolozhsk

In mid-February, the Governor of Leningrad region Alexander Drozdenko said that the regional government has already signed a contract with Ford Sollers, at least that the plant in Vsevolozhsk will last at least until the end of the year.