27.03.2019
SOLLERS will receive 51% in the relaunched 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 restructured Ford Sollers JV will be set up as a successor of the existing Ford Sollers Elabuga, which operates an automobile plant in the ALABUGA Special Economic Zone. The joint venture plans to start operations on July 1, 2019. The restructured JV will be involved in the production and distribution of Ford Transit commercial vehicles, as well as the localization and further development of the special version line-up, which are to enhance the Ford Transit strength as the top-selling, non-domestic commercial vehicle. Besides, the restructured JV will undertake the warranty service and spare parts supply for all Ford cars, previously sold in Russia. The decision to relaunch the Ford Sollers JV to operate solely on the Russian LCV market follows a strategic review by Ford and SOLLERS OJSC and is intended to improve near term profitability and investment efficiency built on the competitive strength of the Ford Transit and high potential of the Russian LCV segment. Taking into account the successful experience and incontestable competences of the SOLLERS Group in LCV production and sales in Russia, the parties agreed that the company would become the controlling shareholder of the new joint venture and manage the development of Ford Transit business in the Russian market.
“The development of our partnership with the Ford Motor Company built on production and distribution of Ford Transit will become an important element in delivering the leadership strategy of the SOLLES Group in the light commercial vehicles segment,” said Vadim Shvetsov, the CEO of SOLLERS OJSC. “Resulting from the new structure of the joint venture with Ford, as well as cooperation with ISUZU and the development of UAZ products, we should be able to more than double the SOLLERS share in the LCV market in the next few years. This becomes possible due to synergies in the component localization and in the market promotion of a full line-up of light commercial vehicles that satisfies all possible customer expectations in the fullest price range,” Mr Shvetsov said.
