Welcome to the North American Subaru Impreza Owners Club Friday August 29, 2014
Home Forums WikiNASIOC Products Store Modifications Upgrade Garage
NASIOC
Here you can view your subscribed threads, work with private messages and edit your profile and preferences Home Registration is free! Visit the NASIOC Store NASIOC Rules Search Find other members Frequently Asked Questions Calendar Archive NASIOC Upgrade Garage Logout
Go Back   NASIOC > NASIOC General > News & Rumors > Non-Subaru News & Rumors

Welcome to NASIOC - The world's largest online community for Subaru enthusiasts!
Welcome to the NASIOC.com Subaru forum.

You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, free of charge, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, so please join our community today!

If you have any problems with the registration process or your account login, please contact us.
* Registered users of the site do not see these ads.
Reply
 
Thread Tools Display Modes
Old 02-19-2011, 04:17 AM   #1
AVANTI R5
Scooby Guru
 
Member#: 73805
Join Date: Nov 2004
Default


Sollers says "Da," to Ford, opening the door to an expanded presence in Russia

Quote:
Eager to expand sales in emerging markets, Ford Motor Co. has announced a 50/50 joint venture with Sollers, one of Russia’s leading automotive companies.

New of the proposed deal — which will involve the production and distribution of Ford passenger cars and light-duty commercial vehicles – followed shortly after Sollers announced it would not complete a partnership under negotiations with the Italian automaker, Fiat SpA.
“We are delighted to be taking this next step for Ford, in Russia, with our proposed partner, Sollers,” said Stephen Odell, chairman and CEO, Ford of Europe.

“This is a great opportunity, and will provide Ford customers in Russia with more products and better service,” said Odell, adding “It also will help to strengthen the Russian automotive industry and its local supply base.”

In 2002, Ford became the first foreign auto manufacturer to start producing cars in Russia, and since then it has built a solid base in the country. But the joint venture with Sollers reflects a broader industry trend.

“International (manufacturers) are pushing their localization efforts forward in Russia, spurred partly by growth trends and partly by government regulations. We expect this to continue,” said Vladislav Boutenko, the head of the Boston Consulting Group’s Moscow office.”

Sollers, the second largest producer of passenger and light commercial vehicles in Russia, has considerable experience in the Russian automotive industry. It will support the proposed joint venture through its manufacturing capabilities, knowledge of the Russian market, experience in distribution and through its ties with the Russian supply base, Ford officials said.

“We believe the partnership will benefit from blending Ford’s distribution channels with Sollers’ manufacturing plants and local experience and connections,” echoed Vadim Shvetsov, general director of Sollers.

While it is not clear what the start-up costs will be, analysts expect Ford will benefit from an increased presence in the expanding Russian auto market, just as it begins to recover from the global economic downturn. The Russian market fell by roughly half between 2007 and 2009, but is now rebounding at one of the fastest rates of almost any of the so-called BRIC, or Brazil-Russia-India-China, markets.

“The Russian auto market,” said Efraim Levy, Standard & Poors automotive analyst, “will exceed Germany’s large market before decade-end.”

Meanwhile, a new study by the Boston Consulting Group stated, “We expect the market to regain pre-crisis volumes of about 3 million units by 2013 and to reach around 3.5 million in 2015 and about 4 million in 2020, becoming the sixth-largest global market, up from tenth currently. Over the next 5 years, market growth will continue to grow at an 8-14 percent compound annual rate.”

That may be great for Ford, but bad news for Fiat – and U.S. ally Chrysler — which know has to come up with an alternative way to penetrate the Russian market. Fiat and Sollers a year ago announced plans to build a factory that would have capacity to produce 500,000 vehicles a year by 2016, financing it with $3.3 billion in Russian government-subsidized loans.

Fiat previously missed out on another opportunity to enter the heart of the old Soviet union when, in 2007, it lost a bidding war to Renault for a stake in Russia’s largest automaker, Avtovaz.

“We are inspired by the opportunity to work with Ford,” said Sollers’ Shvestov. “We are confident that our mutual efforts (will result in) a leading position for the future joint venture company on the Russian market,” Shvetsov said.
* Registered users of the site do not see these ads.
AVANTI R5 is offline   Reply With Quote
Old 02-19-2011, 05:21 AM   #2
fourmicah
Scooby Specialist
 
Member#: 128760
Join Date: Oct 2006
Chapter/Region: RMIC
Location: Over there>
Vehicle:
2012 Ruckus/WRX
Red&White/Gray

Default

Ford will probably offer cooler cars in Russia than they do in the U.S.
fourmicah is offline   Reply With Quote
Old 02-19-2011, 08:35 AM   #3
Hites
Scooby Specialist
 
Member#: 138997
Join Date: Jan 2007
Chapter/Region: MWSOC
Location: Belle Center, OH
Vehicle:
0000 Nothing

Default

Ford continues to steamroll the automotive landscape.
Hites is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Internal Memo Confirms Big Giveaways In White House Deal With Big Pharma BraveUlysses Political Playground 63 08-18-2009 02:49 AM
Ford sees Jaguar, Land Rover sale in early 2008 NYCshopper Non-Subaru News & Rumors 0 12-11-2007 01:49 PM
Ford Fiesta XR4 launches in the land of Oz teh POD Non-Subaru News & Rumors 12 03-05-2007 11:17 PM
Coffee snobs: good grinder deal in SoCal at Ralphs! poison Off-Topic 13 01-02-2006 11:53 AM
dent in downpipe is causing a minor DP -> 3rd cat section leak. Is this a big deal? Wagon Joe Factory 2.0L Turbo Powertrain 1 09-13-2005 01:23 PM


All times are GMT -4. The time now is 07:46 PM.


Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Powered by Searchlight © 2014 Axivo Inc.
Copyright ©1999 - 2014, North American Subaru Impreza Owners Club, Inc.