Ford will close two of its assembly plants in Russia, a spokeswoman for the company’s joint venture in the country told The Moscow Times on Wednesday.
The Vsevolozhsk assembly plant near St. Petersburg and the Naberezhnye Chelny assembly plant in Tatarstan will both close, while the plant in the city of Yelabuga in Tatarstan will remain open and focus on the production of Ford Transit light commercial vehicles. An engine factory in Yelabuga will also close.
“The decision was taken by the shareholders of the joint venture between Ford and Soller as part of a strategic review intended to improve near-term profitability and investment efficiency in a challenging business environment,” said a spokeswoman for Ford Soller’s press office.
She said that no announcement on layoffs would be made until early April, but added that the company employs 3,700 people at all of its locations.
Ford Sollers has been operating as a 50:50 joint venture since 2011. The operation was producing seven models at its three plants in the Leningrad Region and Tatarstan. Sollers said in a statement on Wednesday that it will now become the majority shareholder with 51 percent of the venture, while Ford will retain 49 percent.
The Ford Focus and Mondeo were produced at the Vsevolozhsk factory, and the Fiesta and EcoSport in Naberezhnye Chelny.