07.06.2019
PJSC “SOLLERS” signed a special investment contract (SPIC) with the Ministry of Industry and Trade of the Russian Federation for the development of Ulyanovsk Automobile Plant and Ford Transit production based on the “Ulyanovsk Automobile Plant”, LLC, and “Ford Sollers Elabuga”, LLC, production sites.
The SPIC signing ceremony was held within the bounds of the St. Petersburg International Economic Forum on June 7, 2019. Minister of Industry and Trade of the Russian Federation Denis Manturov, Chairman of the Ford Europe Board of Directors, and PJSC “SOLLERS” CEO Vadim Shvetsov took part in the signing ceremony.
The primary purpose of the project is for the company to implement its long-term leadership strategy in the segment of light commercial automobiles by rolling out its new Ulyanovsk Automobile Plant product line onto the Russian market based on a unified platform and the development of new technology, including gas engine automobiles, built-in telematic systems and “connected automobile” services, as well as ADAS systems.
In addition, the project envisages bringing synergy to fruition between the product line of Ulyanovsk Automobile Plant and Ford Transit with respect to the localization of key parts and aggregates as well as the development of distribution and promotion of the automobiles on the market of a full range of light commercial automobiles in all price segments.
The SPIC signed by PJSC “SOLLERS” in consortium with “Ulyanovsk Automobile Plant”, LLC, and “Ford Sollers Elabuga”, LLC, based on which the new Ford Sollers Joint Enterprise is being created in Russia, is comprised by a total investment volume of 7.5 billion rubles and will allow companies to preseve all key measures of state support for the project over a long-term period of until 2028.
“The signing of the SPIC is an important step in preparing for the language of the new joint venture in Russia and we are hoping that our obligations in the development of Ford Transit business along with continuing support on the part of the Russian government will allow us to create a successful leadership strategy on the light commercial automobiles market in Russia,” Chairman of the Ford Europe Board of Directors Steven Armstrong said.
In the words of PJSC “SOLLERS” CEO Vadim Shvetsov: “The signing of the Special Investment Contract will be an important element in the implementation of the SOLLERS group leadership strategy in the light commercial automobiles segment. Thanks to the developing partnership with Ford around the production and promotion of Ford Transit as well as the development of Ulyanovsk Automobile Plant products we are expecting to double SOLLERS’ share on the LCV market over the next few years. This will be possible due to synergies in the component base localization and in the market promotion of a full line of light commercial vehicles that satisfies all possible product needs of customers in the fullest price range,” Mr Shvetsov said.
As we know, in March 2019, the Ford Sollers Joint Venture, Ford Motor Company, and PJSC “SOLLERS” have announced the restructuring of their joint venture. PJSC SOLLERS will receive 51% in the updated Ford SOLLERS JV, which will focus on the production and sales of the Ford Transit light commercial vehicles lineup. Ford Motor Company will maintain a 49% share in the joint venture.
The renewed Ford Sollers JV will be set up as a successor of the existing Ford Sollers Elabuga, LLC, which owns an automobile plant in the ALABUGA Special Economic Zone. Operational activities of the renewed joint venture will begin on July 1, 2019. The joint venture will include the production and distribution of Ford Transit commercial vehicles, as well as the implementation of localization and further development programs for the special vehicles lineup. The updated JV will also undertake the warranty service and spare parts supply for all Ford cars previously sold in Russia.
