Ford Sollers, the two year old joint venture with production facilities in St Petersburg and Tatarsan, is establising a new research and development centre in Russia to adapt vehicles for the local market.

R&D will be based in Moscow as well as at the two production facilities, Ford Sollers said in a statement.

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The JV produces eight Ford models in Russia including the Kuga and Explorer SUVs and Transit and Tourneo Custom light commercial vehicles.

The decision to localise R&D comes despite new car sales falling for six successive months. The full year forecast by the Association of European Businesses is now 2.8m units, down 5% on last year.

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