(Adds comment by VEB.RF in last two paragraphs)
MOSCOW, Mar 26 (PRIME) -- Ford Sollers, a joint venture between Ford Motor Company and Russian carmaker Sollers, will announce restructuring, including optimization of capacities, on Wednesday, a source with knowledge of plans told PRIME on Tuesday.
“They will officially announce restructuring of the joint venture tomorrow,” the source said.
Business daily Kommersant reported that Ford can stop Russian production and imports fully and reduce its presence in the country to the light commercial vehicles (LCVs), while keeping the stake in the Yelabuga plant, where Ford Explorer and crossover Kuga are produced.
Ford may quit Russia altogether – it has to sign a special investment contract with the government to stay, but it does not plan to do so.
Ford Sollers is now reviewing their plans to boost margins, while Ford announces its new global strategy aimed at boosting competitiveness in Europe. A final decision in expected in April-June.
The Ford Sollers joint venture runs three Russian plants – in the town of Vsevolozhsk in the Leningrad Region, and in Naberezhnyye Chelny and Yelabuga on the Volga with a total capacity of 350,000 of Ford Focuses, Mondeos, Ford Fiestas and EcoSports.
Media and sources said that Ford is considering closing the Vsevolozhsk and Naberezhnyye Chelny plants.
Ford Sollers’ sales fell by 45% to 4, 170 vehicles in the first two months of the year.
Russia’s VEB.RF CEO Igor Shuvalov said the bank has a proposal on restructuring the debt of Ford Sollers and parameters of the deal may be clear by the next meeting of the bank’s supervisory board.
“As a creditor we have a proposal. Ford has approached us. This is an interesting proposal. We are currently working. I cannot disclose details to you, I can say that we are in a close dialogue, seriously discussing various options with Ford and with those who are partners of Ford in Russia. I hope that by the next meeting of the supervisory board we will already have clear parameters of the deal, maybe even a prepared deal,” he said.
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