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Ford to halt cars production in Russia

The company will close two automobile plants in Naberezhnye Chelny and Vsevolozhsk and the engine plant in Alabuga Special Economic Zone

© Alexander Demyanchuik/TASS

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MOSCOW, March 27. /TASS/. Shareholders of Ford Sollers joint venture reached an agreement on restructuring of the joint venture, which will focus in future on the light commercial vehicles segment, according to the press release of the company.

"Business restructuring contemplates completion of cars production by the end of June 2019 with subsequent closing of two automobile plants of Ford Sollers in Naberezhnye Chelny and Vsevolozhsk, and the engine plant in Alabuga Special Economic Zone," the statement says.

The company noted that these measures will lead to a significant staff reduction, which will be carried out primarily under the program of voluntary dismissal with the payment of additional compensation.

Ford Sollers and partners continue negotiations concerning further action required for the business restructuring.

In 2018, sales of Ford Mondeo and Ford Focus, which are produced at the Vsevolozhsk plant, declined by 21.9% and 4.6%, respectively, in comparison with 2017 to 2,203 and 14,388 cars.

Selling plant in Leningrad region

Ford Sollers is in talks on selling the plant in Vsevolzhsk of the Leningrad region, a representative of the company told TASS.

"We are in talks on selling the capacities of the plant in Vsevolzhsk, there are parties concerned. But so far it is early to speak about concrete agreements," the representative said.

Ford Sollers is a joint venture that was established by the Ford Motor Company and Sollers on parity basis in October 2011. The company produces Ford Focus and Ford Mondeo in Vsevolozhsk, Ford Fiesta and Ford Ecosport in Naberezhnye Chelny, as well as Ford Kuga, Ford Explorer and Ford Transit in Yelabuga (Russia’s republic of Tatarstan).

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