Ford is optimistic that Russia’s sales growth will hold up

Article by Christian A., on October 3, 2011

Despite the economy being on a rough patch, Ford Motor Co. is optimistic that Russia’s sales growth will hold up. Ford also believes that the government will support Western involvement in the industry even after the upcoming elections have passed. These statements were given by Ford’s new chief in Russia, Ted Cannis, at the launch of Ford-Sollers.

Last month, Cannis took over as the new CEO of the joint venture between Ford and Russian carmaker Sollers. He also said that the demand in Russia remains “strong.” Ford predicts that its overall Russian car sales for 2011 will be "2.6-2.7 million,” higher than the 2.45 million forecast of the Association of European Businesses (AEB).

In 2009, Russian car sales had been cut by half as the global economic crisis resulted to a drop in demand and dried up access to credit, says Autonews. However, the market experienced a sharp recovery, with 2011 growth forecasted to be at 30%. Ford-Sollers is a joint venture that will almost treble Ford's production capacity in Russia and will enable it to benefit from the state-sponsored incentives like free import tariffs on parts.

To gain from the scheme, Western carmakers such as Renault SA, Volkswagen AG and Ford have ramped up Russian production. This scheme is a part of the government's plan to reinforce its industrial base and lessen the economy's reliance on oil and gas. Ford-Sollers intends to begin production of Ford Transit vans and Ford Explorers at Sollers' factories in 2012.

If you liked the article, share on:

Comments

Recommended

It’s not a bird. It’s not a plane. It’s Kris Singh’s blue carbon flying machine! Time stood still for a few minutes after the extremely rare Pagani Huayra BC Macchina...
by - May 24, 2017
If you’re selling some of the most expensive and most exclusive cars in the world, perhaps it would be a great idea to commission an ultra-rare work from the same...
by - May 24, 2017
Ford Motor Co. now has a new man on the top, and he goes by the name of Jim Hackett. Effective May 22, 2017, Hackett is named the new president...
by - May 24, 2017
Skoda recently launched the new Karoq compact SUV as a replacement model to its now-defunct Yeti small crossover. Slotted below the newly introduced Skoda Kodiaq, the new Karoq features a...
by - May 23, 2017
There are already rumors suggesting that the next generation BMW 5-Series GT is expected to be joining the 6-Series range. The latest reports instead tell us that that 3-Series GT...
by - May 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries