Ford and Sollers Sign Agreement Establishing New Joint Venture In Russia

Ford and Sollers Sign Agreement Establishing New Joint Venture In Russia

Ford Motor Company and Sollers OJSC have signed agreements to establish a 50-50-owned joint venture in Russia. The new business, named Ford Sollers, is scheduled to start operations later this year.

Stephen Odell, chairman and CEO of Ford of Europe, and Vadim Shvetsov, general director of Sollers, signed the final agreement papers at a ceremony today held in Moscow with Russian Prime Minister Vladimir Putin.

Ford and Sollers also signed a Letter of Intent with Vnesheconombank (VEB), the Russian development bank, for long-term financing for Ford Sollers of 39 billion Russian roubles, or approximately $1.4 billion.

Ford Sollers operations will include the Ford manufacturing plant in Vsevolozhsk, near St. Petersburg, which currently builds the Ford Focus and Ford Mondeo, in addition to two Sollers production facilities in the Republic of Tatarstan. Together, these three plants will manufacture a range of Ford passenger cars and light commercial vehicles, including the Ford Transit medium commercial vehicle.

Ford Sollers will be responsible for the import and distribution of Ford brand products, parts and accessories in Russia. In addition to vehicle production, Ford Sollers will produce engines, operate a stamping facility providing a higher level of local parts content for Ford vehicles built in Russia, and establish local research and development activities.

The joint application by Ford and Sollers to the Russian government for participation in the new industrial assembly regime was approved by the Ministry of Economic Development and Trade on June 1, 2011. Ford Sollers will begin formal operation later this year.

Agreement signed between Ford Motor Company and Sollers OJSC establishing a new 50-50-owned joint venture in Russia named Ford Sollers