VEB planning to invest in Ford-Sollers joint venture

Article by Christian Andrei, on February 27, 2011

Vladimir Dmitriev, the CEO of Russia’s state development bank VEB, told journalists that the bank is ready to invest in a joint venture between the Russian carmaker Sollers and Ford Motor Co., but he clarified that the bank does not yet have a deal with the partners.

Sollers recently said it had dropped a joint venture project with Fiat S.p.A. and instead would team up with Ford as the U.S. car maker seeks to increase its presence in the booming Russian market.

Russia’s Kommersant daily said that Ford and Sollers plan to take out a 10-year loan for $1.2 billion, with two thirds of interest payments subsidized by the government. Boston Consulting Group said that Russia will be the sixth-largest global auto market by 2020 with annual sales of 4 million units, up from its current 10th position.

The consultancy added that Russia may surpass Germany by 2018 as the largest market for passenger cars and light commercial vehicles in Europe.

Sollers and Ford plan to build local production facilities in Vsevolozhsk in the St. Petersburg region and in Tatarstan to build Ford passenger cars and light commercial vehicles.

Stephen Odell, Ford of Europe’s CEO, said that the proposed joint venture will help build the Ford brand in Russia and create a profitably growing business, adding that the venture will “help to strengthen the Russian automotive industry and its local supply base.” [via autonews - sub. required]

Topics: ford, russia

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
As if seeing the future more than a decade from now, one of the top scientists in the world of robotics and automations is predicting that children born today won’t...
by - January 19, 2017
Ford has just recently unveiled the 2018 Ford Mustang, and as it turned out, the carmaker gave its beloved pony car a facelift. There have been mixed reactions about the...
by - January 19, 2017
The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 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