VEB planning to invest in Ford-Sollers joint venture

Article by Christian A., 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]

If you liked the article, share on:

Topics: ford, russia

Comments

Recommended

We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
The other day, it was confirmed that Volvo will finally bring the XC40 to US soil, where it will first make an appearance at the 2017 Los Angeles Auto Show....
by - November 23, 2017
There is no question that the new BMW M5 (F90) high performance sports sedan is more powerful, faster and more enticing than the previous model. But for interested customers in...
by - November 23, 2017
Following the Tesla Roadster’s electrifying revelation on Thursday, Musk’s highly ambitious goals have skyrocketed when he tweeted about his future plans for the new sports car. Well, kind of. The...
by - November 23, 2017
Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 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