Reinvest in Russia? Ford Motor Company Says "Da!"

After partnering with the Russian company Sollers for the past five years and investing more than $1 billion into car and engine factories, Ford Motor Company is betting on a Russian rebound and still sees the beleaguered country as a long-term play.

Amid GM’s retreat from Russia, Ford stuck to its game plan by spending cash on new models and plants in that country, presumably to avoid a catch-up situation similar to the one it faced in China. According to Automotive News, the commitment paid off in the first quarter of 2016, sending sales up by 93 percent in a market that saw a 17 percent decline over the same period.

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As Other Automakers Abandon Russia, Mazda Sees Opportunity With Engine Plant

As the price of oil and gas sinks to below $50/barrell, so does Russia’s economy. The former Soviet state, highly dependant on oil and gas revenues for growth, is expected to experience economic shrinkage between 3.4 and 6 percent this year. That isn’t good if you’re doing business in rubles and some automakers are beating a hasty retreat.

Not Mazda.

Like Ford and Hyundai-Kia, Mazda is sticking it out in Russia with their manufacturing partner Sollers (which is also the manufacturing partner of Ford since 2011). The two have just signed a Memorandum of Understanding to begin assessing a new engine plant in the country.

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Mazda Opens Shop In Siberia, Others Follow

Next week, Russian and Japanese dignitaries will assemble in the frigid Siberian port city of Vladivostok to celebrate the opening of the first Japanese car plant in the Russian Far East. On September 6, Mazda will start Russian production of its best-selling CX-5 SUV and the new Mazda6 sedan, says The Nikkei [sub] – most likely after having received an invitation.

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Russia: Chrysler's Loss Is Ford's Gain

Fiat’s plans to build up to 500,000 Chryslers and Jeeps in Russia collapsed last week. Chrysler’s cross-town rival Ford may have had something to do with that. On Friday, Ford and Russia’s Sollers “signed a Memorandum of Understanding under which the parties intend to launch a new 50:50-owned joint venture called Ford Sollers for the production and distribution of Ford vehicles in Russia,” says a Sollers communiqué. Sollers also had been in talks with Fiat, which ended fruitless. The end of the Fiat talks were announced on the same day the deal with Ford was revealed.

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  • ToolGuy This is the kind of thing you get when you give people faster internet.
  • ToolGuy North America is already the greatest country on the planet, and I have learned to be careful about what I wish for in terms of making changes. I mean, if Greenland wants to buy JDM vehicles, isn't that for the Danes to decide?
  • ToolGuy Once again my home did not catch on fire and my fire extinguisher(s) stayed in the closet, unused. I guess I threw my money away on fire extinguishers.(And by fire extinguishers I mean nuclear missiles.)
  • Carson D The UAW has succeeded in organizing a US VW plant before. There's a reason they don't teach history in the schools any longer. People wouldn't make the same mistakes.
  • B-BodyBuick84 Mitsubishi Pajero Sport of course, a 7 seater, 2.4 turbo-diesel I4 BOF SUV with Super-Select 4WD, centre and rear locking diffs standard of course.