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Posts Tagged ‘Ford Sollers Russia’

Allure of Russia Drawing New Investment

Automakers betting on Russian rebound.

by on Oct.09, 2017

Russian President Vladimir Putin, center, listens as Nissan executives discuss plans to add 450 workers to its St. Petersburg plant.

The promise of a modest recovery in the Russian auto market continues to preoccupy car makers in emerging Europe, which are stepping up production and introducing new models to establish a strong position as the market recovers, according to a new analysis from BMI Research.

BMI, a division of the Fitch Group, said in a new analysis that automakers appear to be positioning themselves to capitalize on this with Russia accounting for 16 of the 22 investment projects announced in Emerging European markets – Turkey, Belarus, Czech Republic and Romania – during the third quarter.

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Ukraine, where the western-leaning government has been caught up in continuing strife with Russia, attracted only one relatively small automotive-oriented investment even though it is considered one of the most industrialized countries in Eastern Europe.  (more…)

Mercedes New Russian Plant: Start of Change?

Most automakers cut ties to market, although Ford pondering expansion.

by on Jun.20, 2017

Daimler and Russian officials show off the model for the new Mercedes-Benz plant just outside Moscow.

As many automakers have been running away from the Russian auto market, a few others are moving into to expand their foothold in their absence. Daimler AG began construction of a new Mercedes-Benz plant near Moscow: the first new investment by a major foreign automaker in years.

The German maker is investing nearly $280 million into the new factory to build new Mercedes E-Class sedans starting in 2019 with the luxury brand’s GL class sport utility vehicles following afterward.

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“Establishing a passenger car production in Russia is a strategic investment in an important sales market for Mercedes-Benz. We are extending our local footprint and, at the same time, strengthening our global competitiveness,” said Markus Schäfer, member of the Divisonal Board of Mercedes-Benz Cars, Production and Supply Chain, during the groundbreaking ceremony. (more…)

Automakers Struggling to Find Answers in Russia

Poor sales has GM laying low while Ford doubles down.

by on Apr.28, 2015

Ford is hunkering down for the long haul in Russia while GM is cutting back its operations while the market there continues its free fall.

It was the best of times, it was the worst of times … “it” is the current state of the auto industry in Russia.

What was once considered the next great promised land of auto sales in Europe has now become a dicey proposition with two of the big U.S. players – General Motors and Ford – taking different approaches to the market. GM’s is cutting its losses while Ford is hunkering down for the long haul.

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The light vehicle market is cratering, posting its biggest monthly decline in Russia in about five years in March when it slid 42.5%, according to the Association of European Business. Through the first quarter of 2015, sales in the country are down 36.3% compared with year-ago figures. (more…)