Ford Increasing Presence in Russia

Ford has made the decision that they are going to increase production of their Ford Focus model at their Russia plant. And to do so they have hired an extra 500 employees to add to the roster at the plant, in which had already employed around 2,000 workers. The need for the Focus is being driven up by high gas prices and the fact that the Focus is really affordable when compared to other cars in the small car segments that are competing with the Focus. 

 

Most people are wondering why Ford decided to utilize Russia, after all it is not known to be the auto market capital of the world. However, the reason for this choice is that the future is looking bright for Russia. Analysts have predicted that Russia will become a major player in the auto market with more and more cars being produced there and by 2020 they will be the location to be and produce cars. Ford is just getting in on the game a bit earlier, and making sure that they have their stake in the auto market in the country. 

 

Ford has teamed up with the Russian automaker Sollers, in a fifty-fifty partnership in which they are called Ford Sollers. This partnership is set to take effect sometime at the end of this year. It is still unclear whether the two will be making automobiles between them that are a partnership of their style or if they are simply combining manpower and technology. However, the partnership should be one that is going to help both of the companies involved since it means that they are going to be able to produce cars that otherwise would have had to be shipped to Russia. Ford is hoping to make their brand a dominance in the society. Time will tell if they were correct in going this route, however, thus far it looks like a great decision to make. 
 

Related Articles

Leave a Reply