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The
move is part of a restructuring that will see Russia's Sollers
assume control of the venture, which is currently led by the
U.S. automaker, the companies said in a statement on Wednesday.
Industry sources told Reuters this month that Ford was
considering closing Russian plants as it was reviewing
operations in unprofitable regions.
The U.S. carmaker said the closures would lead to "significant"
job losses, without giving details.
A restructured Ford Sollers will focus on commercial vehicles,
while passenger vehicle production will cease by the end of
June, the companies said.
"The new Ford Sollers structure supports Ford's global redesign
strategy to expand our leadership in commercial vehicles and to
grow the business in Europe in those market segments that offer
better returns on invested capital," Steven Armstrong,
president, Ford of Europe, said in the statement.
Ford was the first international carmaker to launch vehicle
assembly in Russia, opening a plant in St Petersburg in 2002. In
2011, it set up a joint venture with Sollers in which Ford and
Sollers each hold a 50 percent stake, but Ford has controlled
the business since buying up preferred shares.
Sales of new cars in Russia are expected to rise 3.6 percent
this year, marking a slowdown from last year, according to an
estimate from the Association of European Businesses lobby
group.
"The Russian passenger vehicle market has been under significant
pressure in recent years, with recovery slower than expected and
a shift to lower priced passenger vehicle segments," Ford said.
(Reporting by Gleb Stolyarov; Writing by Maria Kiselyova;
Editing by Jan Harvey and Mark Potter)
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