AUTONEWS

Ford ends its activities in Russia

Ford made the announcement about its situation in Russia. The American manufacturer will leave the Russian automotive market.

Ford joins other manufacturers, such as Nissan, Renault or Volkswagen, and leaves the Russian car market. The war that is going on in Ukraine led the company to make this decision. On the same day, Mercedes-Benz announced the same, saying it would sell all of its Russian assets to a local investor.

Ford said it has concluded a deal to sell its 49 percent stake in Russia-based Sollers Ford. The company says the shares will sell at an undisclosed “nominal” price.

The US automaker posted a loss of $122 million after suspending operations in Russia earlier this year. As mentioned, the company will not have additional impairment due to the announcement made on Wednesday.

"Ford shares will be transferred to the joint venture at par value," the company said, adding that it retains the option to buy it back over a 5-year period "if the global situation changes."

Ford says "goodbye" to Russia...Ford sold about 20,000 vehicles in Russia in 2021, according to analyst estimates. The company announced the suspension of its operations in Russia in March this year.

Ford is not the only manufacturer that has decided to leave the Russian car market. Renowned manufacturers such as Volkswagen, Renault or Nissan have decided to end all activities in Russia. They sold all their assets to various investors or to the Russian state.

In addition to Ford, Mercedes-Benz has announced that it will withdraw from Russia. According to the first information provided by Mercedes, the subsidiaries held in Russia will be sold to a local investor. Thus, they will become the property of a well-known car dealer on the Russian market, called Avtodom. The Germans have suspended their activities in Russia since the spring after Russia invaded Ukraine.

by Mundoquatrorodas