Ford Cuts 950 Jobs In Russia Due To Weakening Ruble, Demand

Cameron Aubernon
by Cameron Aubernon

Two plants in Ford’s joint venture with Russian manufacturer OAO Sollers will experience job cuts as a result of a weakening ruble and decreasing demand by customers in the local market.

Bloomberg says 700 positions in St. Petersburg and 250 temporary positions in the Tartarstan region will be let go by June, while production in the former will lose one shift. The cuts were caused by “the rapid and significant depreciation of the ruble, falling industry sales and a consumer shift away” from small cars toward large SUVs according to Ford, who also reassured that the joint venture would continue to remain committed to the Russian market.

As for the current state of things, sales fell 4 percent in the first two months of 2014, following a 5.5 percent decline in 2013 to 2.78 million vehicles, while the ruble lost 13 percent of its value against the dollar within the last 12 months.

The St. Petersberg plant will also shut down for over four weeks before single-shift production and painting begin June 9. The plant currently builds the Mondeo and Focus.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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  • Onus Onus on Apr 03, 2014

    I suppose everyone is an Expert on Russia now. Anyway the Russian economy has been on the down turn long before the ukraine stuff. The ruble was going to slide downward ukraine or not. The central bank was going to float the currency completely. Fact is Russian hate Russian brand products. Made in Russia doesn't seem to bother them and makes cars cheaper by not paying the stupid recycling fee, and huge import tariff. Most of these cars a CKD anyway. The focus seems to be super popular. The refresh should help. Russians have a huge choice of cars. Nearly all of the Russians i know who wanted cars bought them a year or two ago. Lots of working people don't have money to buy cars even those living in moscow. Plus public transportation is cheap abit crude and cold in the winter.

  • OldandSlow OldandSlow on Apr 03, 2014

    The first three initials in BRIC are experiencing economic stagnation this year, probably because of the slow down of economic growth in China. Ford has to maintain a presence in in all four of the above to stay global. The question is does Ford offer the right vehicle for emerging markets? Most of Fords SUV's are based on car modified platforms and use complicated drive trains that are more suited to Western Europe.

    • See 4 previous
    • RobertRyan RobertRyan on Apr 04, 2014

      @OldandSlow, Will be a problem for Ford. Cannot think of any of Ford's current lineup the Russians will want.

  • Stanczyk Stanczyk on Apr 03, 2014

    Nobody says that Russia is wonderfull country(in moto-terms : you've got tasteless,but expensive nouveau-riche SUVs vs old crapy Ladas and Ziguli ;) , but .. 'The first three initials in BRIC are experiencing economic stagnation this year, probably because of the slow down of economic growth in China. ' - how about forex-market manipulations by speculators from WallStr and London city .. weakening 'developing countries' national currency.. 'Petro-dollar system' will fall, and than we'll see 'what's what'..

  • Stanczyk Stanczyk on Apr 03, 2014

    I like Vlad .. Vlad is taking a lot about western-fraudsters .. (You know what happend to others who talked this way: Kadafi, Saddam H.(he wanted to sell gas/oil in other currencies than dollar) or Hugo Chavez..Iran also is enemy nr1 (they also want to sell gas/oil in other currencies than dollar).. ) .. .. and Crimea was always a part of Russia .. for a long time(with a few decades break after the IIWorld-War..)

    • 28-Cars-Later 28-Cars-Later on Apr 03, 2014

      Vlad's quite safe and although he's right I don't want to live in a world where he rules the Earth.

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