Ford production remains steady within U.S. borders, however such models as the Ford Explorer and the Ford Transit Van will soon be natives of Russia as well. According to US-Russia Ford CEO Ted Cannis, "demand remains strong"1 there for these vehicles and other new Ford models. In addition to production of the Explorer and Transit, the automaker is set to construct a Russian plant that will crank out 180,000 to 200,000 engines per year and will be responsible for distributing all Ford parts.
Apart from a desirable market, Russia offers car manufacturers other potential success factors as well. For example, the country's government is planning to strengthen its industrial base while reducing the economy's dependence on oil and currently offers state-sponsored incentives such as free import tariffs on parts.
"The government is being very proactive with its auto industry, which doesn't always happen. It is trying to construct a business, bringing in expertise, infrastructure and experience,"1 said Cannis.
The Russian automotive market wasn't always so high. In fact, car sales were down 50 percent only three years ago when the economic crisis prompted a decrease in demand and cut-off access to credit. But according to the Association of European Business, things are looking up. The association predicts that by the end of the year car sales will reach 2.6 - 2.7 million and by the end of the decade, that number will have increased to 4 million. In order to ensure these numbers are attained, Russia's state development bank, VEB, approved a ten year, $1.2 billion (39 billion rubles) loan for Ford.
Russian Ford fans will have to wait until next year for the production of their favorite vehicles. But there are plenty of new Ford models (i.e. the Ford Ranger) produced right here in the U.S. today. Plantation Ford at 707 North State Road 7 Plantation, FL invites you to stop by for a test drive or contact us online to schedule an appointment.