Sollers CEO sees serious changes in Ford’s business in Russia

SOCHI, Feb 15 (PRIME) -- Ford may change its Russian business significantly after an audit, Vadim Shvetsov, CEO of carmaker Sollers that has a joint venture with Ford, told reporters on Friday.

“An audit of the whole business case of Ford in Russia is taking place now. Taking into account that Ford is a super majority owner of our joint venture, Ford is mainly doing the work, while we provide data. Anyway, I think that Ford’s business in Russia will change dramatically, because it is clear in which segments it is not competitive,” he said, adding that the audit should be finished within a month.

“My personal view is that Ford’s business in Russia should be transformed. It is obvious that some car models are not competitive, and it is unreasonable to continue their production if Ford does not support them globally…I (as a minority shareholder) will recommend reducing the model line of cars, but it is Ford’s business, and they can subsidize it as long as they want.”

Even if Sollers leaves the joint venture with Ford after the audit, it will not hurt the Russian company significantly, as its effective stake in the joint venture stands at only 0.03%. Soller’s share in the company was diluted in 2015, when Ford invested U.S. $250 million into the venture through preferred shares, Shvetsov said.

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