Ford and Sollers to Launch Russian JV

Ford-Sollers plans to build Explorer SUVs at a plant in the Tatarstan republic starting next year. Russia will be the second market where this model is produced, after the U.S. The Ford Explorer joins the new Ford Focus and Ford Mondeo, which are currently built in St. Petersburg, and the Ford Transit medium commercial vehicle, which also will be built in Tatarstan from 2012.

In addition to vehicle production, Ford Sollers will set up an engine manufacturing plant with a capacity of 180,000 to 200,000 units; operate a stamping facility that will provide a higher level of local parts content for locally built Ford vehicles; and establish research and development activities. It also will be responsible for the import and distribution of all Ford brand products, parts and accessories in Russia.

The JV has recently secured a long-term financing loan of 36 billion roubles (€828 million) for 10 years from Russia's Vnesheconombank to help develop the Ford Sollers business. The new company will be headquartered in Khimki, Moscow oblast, and will have three production sites; one in the Leningrad Oblast, and two in Tatarstan.