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Ford plans to team with Sollers in Russia
(AP) -- Ford Motor Co. is teaming up with Russian automaker Sollers to make and distribute cars in Russia, one of the fastest growing auto markets.
Under a deal announced Friday, Sollers will build Fords at Russian plants, helping boost a struggling local industry. Ford will have access to a huge market that could bolster its revenues.
Financial details weren't disclosed, but the automakers said they will have equal stakes in their joint venture called Ford Sollers. Ford declined to give production or sales targets for the venture.
The announcement came shortly after Italian automaker Fiat SpA backed out of a potential partnership with the same Russian company. The unraveling of the Fiat Sollers venture gave Ford an opportunity to step in.
Ford and Sollers are expected to finalize their deal in June. The venture's operations could start by year's end.
The Dearborn, Mich., company began selling cars directly to Russians in 2002, and like many car makers is eager to expand business there as demand improves.
While domestic auto companies in Russia have been struggling, the market itself has been gaining strength. Car sales in Russia rose by 30 percent last year to 1.9 million, according to the Moscow-based Association of European Businesses. Nine of the 10 best-selling models were produced locally, while Ford Focus was in the top five best-sellers.
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(AP) -- Ford Motor Co. is teaming up with Russian automaker Sollers to make and distribute cars in Russia, one of the fastest growing auto markets.
Under a deal announced Friday, Sollers will build Fords at Russian plants, helping boost a struggling local industry. Ford will have access to a huge market that could bolster its revenues.
Financial details weren't disclosed, but the automakers said they will have equal stakes in their joint venture called Ford Sollers. Ford declined to give production or sales targets for the venture.
The announcement came shortly after Italian automaker Fiat SpA backed out of a potential partnership with the same Russian company. The unraveling of the Fiat Sollers venture gave Ford an opportunity to step in.
Ford and Sollers are expected to finalize their deal in June. The venture's operations could start by year's end.
The Dearborn, Mich., company began selling cars directly to Russians in 2002, and like many car makers is eager to expand business there as demand improves.
While domestic auto companies in Russia have been struggling, the market itself has been gaining strength. Car sales in Russia rose by 30 percent last year to 1.9 million, according to the Moscow-based Association of European Businesses. Nine of the 10 best-selling models were produced locally, while Ford Focus was in the top five best-sellers.
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