Fields: U.S. Sanctions Won’t Hurt Ford in Russia

New U.S. and European Union economic sanctions against Russia in response to its invasion of Ukraine's Crimea peninsula present no immediate threat Ford Motor Co. operations in Russia, says COO Mark Fields.

He tells reporters that Ford still expects Russia to become Europe's largest car market. He says Ford is more concerned about the impact of the weakened ruble on the overall health of Russia's economy. Analysts point out that the ruble's 11% drop so far this year helps domestic producers, led by Lada-makers OAO AvtoVAZ.

Russian media have reported that Ford's 50:50 venture with OJSC Sollers may suspend some production between April and June because of slumping sales.

Last year the venture sold 106,700 vehicles in Russia, down 18% from 2012, according to the Moscow-based Assn. of European Businesses. AEB says demand for Ford vehicles in the first two months of 2014 dropped 21% to 10,600 units.

Ford Sollers currently produces the Focus and Mondeo sedans in St. Petersburg. The partners also operate a factory in the Russian republic of Tatarstan that makes the Kuga crossover, Explorer SUV, S-Max MPV, Galaxy minivan and Transit commercial van.