Ford, Sollers Sign Agreement on Car Production Venture in Russia ...

Ford Motor Co. (F) and OAO Sollers,
Russias second-biggest automaker, signed an accord nowadays to
produce cars in Russia to get bigger in a marketplace so as to grew 60
percent in the primary five months of the year.

Production may arrive at 350,000 vehicles a day in 2015,
Sollers Chief Executive Officer Vadim Shvetsov told reporters
today at a signing ceremony attended by Prime Minister Vladimir
Putin in Moscow. The partners determination too construct a factory to make
200,000 heavy a year, he said.

The joint business enterprise determination transport together six Ford models, including
the Focus, Mondeo, Transit and new heavy to be customer in 2012
to 2014, normal to a Russian administration factsheet distributed
to reporters. In six years, at smallest amount 60 proportion of the
components determination be complete locally.

œThere determination be a figure of new models, a number of of construct will
be exclusively liberally in Russia, Stephen Odell, Fords European
chief, told reporters.

Dearborn, Michigan-based Ford and Sollers too signed a
letter of intent nowadays by means of VEB, Russias condition development
bank, for a 39 billion-ruble loan ($1.4 billion) to expand the
project. Total investment is predictable to arrive at 74.5 billion
rubles, normal to the government.

By the center of the decade, Russias car marketplace may exceed
4 compensation vehicles, creation it the main in Europe, Odell said.

Russias similar of new car and glow commercial vehicles
expanded 60 proportion in the primary five months from side to side May to
989,013 units, the Association of European Businesses said
today. The collection previous month raised its full-year forecast to
2.35 compensation vehicles and supposed nowadays it may boost it again.

Sollers terrified a intended partnership by means of Fiat, agreeing
in February to set up the 50-50 business enterprise by means of Ford, the second-
largest U.S. automaker, since of the significance of
distribution as healthy as an industrial alliance, the Moscow-based
company supposed at the time.

Sollers is prepared to produce Fiat cars as,at the same time as its vegetation have
free capacity, Shvetsov supposed today.

To get in touch with the reporter on petroleum story:
Ilya Arkhipov in Moscow at
iarkhipov@bloomberg.net

To get in touch with the not practical accountable for petroleum story:
Balazs Penz at
bpenz@bloomberg.net

Article source: http://www.bloomberg.com/news/2011-06-08/ford-sollers-sign-agreement-to-produce-350-000-cars-in-russia.html

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