The Ford Sollers joint venture in Russia is building a US$274m (RUB10bn) engine plant in Elabuga, Tatarstan and will add the EcoSport small sports utility vehicle to local production, also in Tatarstan, from the second half of 2014.
Production of three versions of the 1.6-litre Duratec petrol engine will begin at the new plant in December 2015.
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“This is an important day for Ford Sollers and underscores how serious we are about investing in production in Russia and offering a full range of vehicles for customers in the fast-growing Russian market,” said Ted Cannis, chief executive officer and president, Ford Sollers [read our recent interview with him here].
The joint venture formed in late 2011 between Ford and the Russian company, operates three assembly plants. In 18 months, the JV has expanded from building just the Focus and Mondeo to add the Galaxy, S-Max, Transit, Kuga, Explorer and Transit.
Sollers, once linked with Fiat, also has an assembly contract with one-time Ford affiliate Mazda.
The move to make engines locally is part of recently stated aims by Ford, and rival GM, to increase the local content of vehicles assembled in Russia to at least 60% to reduce shipping costs.
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By GlobalData“The demand for Ford SUVs is growing in Russia, and we’re pleased to announce that next year our already strong lineup of SUVs will be supplemented by the EcoSport,” said Adil Shirinov, executive director and chief operating officer, Ford Sollers. “Local production of the EcoSport in Tatarstan will help to strengthen the Ford brand position in Russia’s popular SUV segment.”
The official ground-breaking for the Ford Sollers Elabuga Engine Plant took place in Tatarstan. The event was attended by Ildar Khalikov, prime minister of the region. At 42,600 sq m, the facility will be approximately the size of six football fields.
The plant will build three versions – 85 PS, 105 PS and 125 PS power levels – of the 1.6-litre, normally-aspirated Duratec petrol engine. It was was Ford’s first all-aluminium engine.
The plant will have an initial capacity of up to 105,000 units with expansion to up to 200,000 provided for. At least 30% of Russian-built Ford vehicles will be equipped with these engines.
The new plant will initially employ 500.
The EcoSport small SUV will be built in and go on sale in Russia in the second half of 2014. It’s currently made in Brazil and India and also scheduled for Chinese production.
The Tatarstan-built EcoSport will have electronic stability program, hill launch assist, SYNC voice-activated in-car connectivity system and keyless entry & start.
Ford production started in Elabuga, Tatarstan in 2012. The facility currently manufactures the Transit, Kuga, S-Max, Galaxy and Explorer with full production of the Explorer starting last month.
The Focus and Mondeo are made in Vsevolozhsk near St Petersburg,
Ford Russia also imports the Focus ST, Ranger, Transit Connect, Tourneo Connect, Tourneo Custom and Transit chassis cab.
