Major US carmaker leaves Russia

28 Oct, 2022 06:56
Ford has sold its stake in a joint venture, but retains the option to return

One of the world’s leading car manufacturers, Ford Motor Company, has sold its business in Russia, the US company said in a statement on Wednesday.

Ford “finalized the exit of its previously suspended operations in Russia through the sale of its 49% share in the Sollers Ford Joint Venture,” the statement on the carmaker’s website reads, adding that the shares will be transferred for “a nominal” undisclosed value.

However, the company said it could return to the Russian market “should the global situation change,” as under the terms of the sale it retained the option to “repurchase the shares within a five-year period,” the statement adds.

In March, Ford fully suspended all of its operations in Russia, including manufacturing, supplying parts, IT, and engineering support, and took a $122 million write-down in connection with the suspension.

The company stopped producing passenger cars in Russia in 2019 due to declining demand. The Sollers Ford Joint Venture produced Ford Transit vans and developed special-purpose vehicles.

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