SOCHI, September 16 (Itar-Tass) —— One of Russia’s biggest banks, Vnesheconombank (VEB), and the Ford-Sollers joint venture have signed an investment agreement on the funding of the project aimed at the production of For-designed cars and engines in Russia.
The document was signed in the presence of Russian Prime Minister Vladimir Putin in the format of the Tenth International Investment Forum in Sochi on Friday.
VEB will grant 39 billion roubles (USD 1 = RUB 30.53) of investments in the Ford-Sollers joint company. According to Putin’s earlier words, the funds will be spent for the higher localisation of the production, in particular for the setting up of a facility for the production of car parts in Russia. The loan will be granted for ten years.
In June, Ford and Sollers signed an agreement on the creation of a joint car-manufacturing facility.
The new joint venture was planned to start its activities at the end of the year. Ford-Sollers will embrace production sites located in Vsevolzhsk (Leningrad Region), as well as Tatarstan’s Naberezhnye Chelny and the Alabuga special economic zone, which will produce Ford’s cars and light commercial vehicles (LCV).
Aside from the car and LCV production, the joint venture will manufacture engines and presswork. Ford-Sollers plans to develop scientific, research, and design activities. The new company will be responsible for import and sales of all Ford’s products, including cars, parts, and accessories on the Russian market.
The JV will have an access to the Ford global car portfolio in the format of the One Ford strategy.
The Sollers Group embraces the Sollers-Naberezhnye Chelny plant, the Ulyanovsk Car Plant, Zavolzhsky Motor Plant and the Sollers-Far East Plant. The company produces cars of UAZ, Isuzu, SsangYong and Fiat brands. In 2010, the sales of the Sollers group went up by 37 percent to reach 93,000 vehicles.