Ford May Export Cars from Russia to Eastern Europe

Ford Motor Co. tells Reuters its Ford Sollers venture in Russia may expand its export business by shipping cars to eastern Europe.

CEO Mark Ovenden says he wants to test the European market as a possible outlet for its underutilized factories in St. Petersburg (Focus small sedan and Mondeo midsize sedan) and Naberezhyne Chelny (Fiesta supermini and EcoSport small SUV).

Ford’s sales in Russia plummeted 40% to only 34,100 vehicles through the first 11 months of 2015. Reuters notes the company’s two Russian plants have combined annual capacity to make 350,000 units. Ford says it also may export engines made at its new factory in Tatarstan.

Ford isn’t alone in pondering an export strategy for its Russian facilities. In August, Volkswagen AG told Reuters it might export cars to unspecified markets from its factory in Kaluga. The facility has annual capacity to make a combined 150,000 Skoda Rapid small cars and VW Polo minicars and Tiguan crossovers. 

VW’s sales in Russia from January through November totaled 70,500 units, down 38% from the same period in 2014, according to the Moscow-based Assn. of European Businesses.