Ford to Take Control of Sollers Venture in Russia

Ford Motor Co. has agreed to take control of its Russian carmaking venture with OSJC Sollers and will provide the partnership with unspecified additional financial support, Reuters reports.

Ford will retain its 50% ownership in the business but grant Sollers an unspecified number of preferred shares in the venture. Sollers also has the right to sell its stake in the partnership for at least $135 million (7 billion rubles).

Ford describes the current Russian market as "extremely volatile and challenging" but reiterates its vision of "significant potential" in the longer term.

Ford Sollers began building the Mondeo sedan earlier today at its Vsevolohsk factory outside St. Petersburg. The venture reiterates plans to introduce at least three other new models to its sales lineup this year, including the Focus sedan and Fiesta five-door hatchback.

Sollers indicated earlier today it lost 4.7 billion-ruble ($90 million) on the venture in 2014 as the Russian passenger car and light commercial van market began to collapse, according to Reuters. The Russian market shrank 10% last year and 36% in the first three months of 2015, according to the Moscow-based Assn. of European Businesses.

Reuters notes Sollers also has carmaking joint ventures with Isuzu, Mazda, SsangYong and Toyota.