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Ford-Sollers Venture Cuts Output in Russia
Ford Motor Co.'s 50:50 joint venture with OJSC Sollers is slashing production at its assembly plant in St.
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Ford Motor Co.'s 50:50 joint venture with OJSC Sollers is slashing production at its assembly plant in St. Petersburg, Russia, because of slumping sales.
The company says it will idle the factory for a combined 20 days in this month and September. Thereafter the facility, which makes Ford Focus and Mondeo cars, will end one of its three shifts.
The partners have begun talks with labor unions about eliminating an undisclosed number of jobs at the plant, according to Ford.
Sales of cars and light commercial vehicles in Russia fell 6% in the first seven months of 2013. Ford's volume dropped 18% during that period, according to the Moscow-based Assn. of European Businesses in Russia.
General Motors Co. has idled its assembly plant in St. Petersburg for four weeks through Aug. 24 to keep production in line with demand.
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