Ford is cutting back production of its Focus and Mondeo models at its Russian factory because of falling sales in the country.
The Ford Sollers joint venture will suspend production at its Vsevolozhsk plant near St Petersburg for 20 days during August and September and, from the end of next month, it will move to two shifts from three a day, the company said. Discussions have begun with union representatives over a possible reduction in the size of the 2,700-strong workforce.
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Car sales in Russia fell by 8% in July, the fifth consecutive monthly decline, according to the Association of European Businesses. Ford’s sales dropped 11% during the month. With the economy faltering, the AEB has cut its forecast for the full year by 5% to 2.8m units.
Formed in late 2011, the Ford Sollers venture also has production facilities in Tatarstan and produces eight models in Russia including the Kuga and Explorer SUVs. Ford said it will continue to increase production of SUVs and commercial vehicles in Russia to boost sales in these still growing segments.
