MOSCOW: Ford Motor Co's Russian joint venture Ford Sollers will close two assembly plants and an engine factory in Russia, exiting the country's passenger vehicle market, resulting in charges of about US$450 million to US$500 million.
The No. 2 U.S. carmaker said the closures would lead to"significant" job losses, along with the closure of assembly plants in Naberezhnye Chelny and St. Petersburg, and an engine plant in Elabuga. The restructuring follows similar actions in South America and Europe as Ford works to return to profitability in money-losing markets.
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 of Ford of Europe, said in the statement.
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »