Ford will increase capacity of its car plant in St. Petersburg by 50% in order to meet demand for the latest Focus.
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Launched in July 2002, the plant will have its annual capacity increased to 60,000 vehicles a year from January 2006, up from 40,000 now. The St. Petersburg facility recently started production of the redesigned Focus, Ford’s top-selling vehicle in Europe. It is the only plant that builds the model line in all four body styles: 3-and 5-door hatchback, 4-door sedan and wagon.
Ford made an initial investment of $US150 million to its plant in St. Petersburg . Subsequent expansions, including the addition of second and third shifts, upgraded equipment and establishment of a central parts depot, have increased total investment to $200 million. The latest capacity increase will involve an additional investment of $30 million by mid-2006.
The Focus is also produced at Valencia in Spain and Saarlouis in Germany.
Since its introduction in Russia , the Focus has enjoyed considerable success. To meet the strong demand, Ford added a third production shift at the plant in April 2004, increasing the site’s employment by 420, to 1,570 people. With more than 28,000 units sold in 2004, the Focus was the best-selling model among foreign brands in Russia for the second consecutive year. In February 2005 the 50,000th Focus rolled off the assembly line.
For the first five months of 2005, Ford sales were 15,900 units, an increase of some 30% over the same period of 2004. Ford sold 38,700 vehicles in Russia in 2004, an increase of nearly 90% over the previous year. Market share increased to 11.5% in 2004, from 10.5% in 2003.
Ford has had a long association with Russia , appointing its first dealer in 1907. Sales of cars, trucks and tractors were so successful that a plant was established in Nizhny Novgorod , which began production of the Model AA in 1930. Ford pioneered the automotive industry in Russia with the establishment of the Nizhny Novgorod plant, which is now the home for the second largest car manufacturer in Russia , Gorkovsky Avtomobilniy Zavod (GAZ).
