Ford’s business in Russia is small and has been downsized over the past three years. There were only 22,000 of its vehicles – including Ford-branded automobiles produced by an unconsolidated affiliate – sold there last year, according to regulatory filings.
The Dearborn, Michigan-based automaker had said in 2019 it was closing three factories in Russia, pulling out of a car market where it was once a pioneer as part of a broader overhaul of its money-losing European operations. That decision was made as an economic slowdown and western sanctions dimmed the outlook for what many automakers had long seen as a key growth market.
Russia has not been a big market for American automakers. GM sold only 3,000 vehicles, mostly Cadillac luxury SUVs, there.
While scrutinising weak-performing operations, GM shut down its plant in St Petersburg in 2015 and kept only a small retail operation selling expensive models. At the time, Ford tried to boost its operations there, only to see sanctions and an economic slowdown hurt vehicle sales.
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Ford tells partners it is suspending operations in Russia
Ford Motor Co said it is suspending operations in Russia, joining companies across the world in pulling back following the country’s invasion of Ukraine.
On Tuesday the automaker told its joint venture partners it is halting work immediately. Ford had already been winding down its Russian operations, which consist of commercial van manufacturing and Russian sales through a minority interest in the Sollers Ford joint venture, the company said.
“We are deeply concerned about the invasion of Ukraine by Russia and the safety of the Ukrainian people,” Ford CEO Jim Farley said on Twitter.
The company, which doesn’t have significant operations in Ukraine, plans to make a donation to the Global Giving Ukraine Relief Fund.
With the decision Ford joins a growing group of companies leaving Russia or pausing operations, including General Motors Co and Harley-Davidson Inc. Huge oil producers BP Plc and Shell Plc, along with prominent players in other sectors such as Apple Inc, made similar moves.
Ford’s business in Russia is small and has been downsized over the past three years. There were only 22,000 of its vehicles – including Ford-branded automobiles produced by an unconsolidated affiliate – sold there last year, according to regulatory filings.
The Dearborn, Michigan-based automaker had said in 2019 it was closing three factories in Russia, pulling out of a car market where it was once a pioneer as part of a broader overhaul of its money-losing European operations. That decision was made as an economic slowdown and western sanctions dimmed the outlook for what many automakers had long seen as a key growth market.
Russia has not been a big market for American automakers. GM sold only 3,000 vehicles, mostly Cadillac luxury SUVs, there.
While scrutinising weak-performing operations, GM shut down its plant in St Petersburg in 2015 and kept only a small retail operation selling expensive models. At the time, Ford tried to boost its operations there, only to see sanctions and an economic slowdown hurt vehicle sales.
More stories like this are available on bloomberg.com