Ford considers closing two Russian plants
Ford is considering closing two plants in Russia as part of its global plan to restructure operations in unprofitable regions, Reuters reads.
After running up fourth-quarter losses in all regions outside North America, Ford is making cuts in Europe, closing down vehicle lines in South America and laying off thousands of workers in China.
In Russia, where Ford has the capacity to produce 360,000 vehicles a year, the U.S. carmaker could close its site in the northern Leningrad region and one of its plants in the central region of Tatarstan, three sources in the industry said.
The Focus and Mondeo passenger car models produced at the Leningrad region plant, and the EcoSport and Fiesta models produced in Tatarstan would no longer be made in Russia and production of the Kuga and Explorer models may also be discontinued in Russia, sources said.
Ford’s business in Russia is operated via a joint venture with Russian automaker Sollers.
A spokeswoman for Ford in Russia said discussions were ongoing about reorganizing the Russian business as part of Ford’s new global strategy.