Ford lays off its employees in Russia because of Ukraine
Kyiv, April 02 (Navigator, Svetlana Kuznetsova) – Ford Motor Co. is laying off nearly 13% of its workforce in Russia due to falling sales and the rapid weakening of the ruble, which has accelerated in recent weeks as a result of Western sanctions over the annexation of Crimea.
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The Wall Street Journal writes about this.
It should be noted that foreign car manufacturers have invested significant funds in their business in Russia in recent years, but now, due to a drop in sales by 5%, as well as a slowdown in the growth of the Russian economy, associated with economic instability in connection with the latest events in Ukraine, a shadow on a once fast-growing market.
Ford was one of the fastest growing companies in Russia in terms of local production. Cars of this brand are leaders in sales in Russia, in particular, the Focus model is considered the most popular model. However, the company saw sales fall 18% last year and another 21% in the past two months.
In this regard, Ford Sollers said it plans to cut 700 jobs at its main plant in St. Petersburg, where the Focus model is produced. The company employs about 5500 people.
Despite this, Ford Sollers assures that it considers the weakening economic indicators to be a temporary phenomenon and remains committed to the Russian market.
“Ford Sollers continues to expect Russia to become Europe's largest automaker in the long term and is rapidly moving to expand its lineup,” the company noted.
Confirmation of this is the planning to begin production this year in St. Petersburg of the small sports SUV EcoSport, and next year – new models of Ford Focus and Ford Mondeo.
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