Categories AlphaGraphs, Other Industries, U.S. Markets News

Ford exits Russian car market as pressure mounts on profitability

After much deliberation, the Russian joint-venture partner of Ford Motor Company (F) has decided to close its passenger car division in that country.  Earlier, Ford had hinted at discontinuing the production of passenger vehicles in Russia, citing the growing pressure on profitability due to falling demand.

The closure of two assembly units and an engine factory – mostly by June this year – will lead to Ford Sollers assuming control of the venture, focusing solely on commercial vehicles. Meanwhile, the process is expected to render a large number of employees jobless and result in Ford incurring charges of $450-$500 million.

The process is expected to render a large number of employees jobless and result in Ford incurring charges of $450-$500 million

Last year, the Detroit, Michigan-based automaker embarked on a massive reorganization involving large-scale workforce reduction and plant closures in the Americas and Europe. As part of the program, launched with the aim of returning to profitability in the loss-making markets, a number of plants were shut down and the management team was reshuffled.

Last week, the company appointed Amazon (AMZN) veteran Tim Stone as its chief financial officer to replace Bob Shanks who will be retiring later this year. Experts believe the appointment of an executive with technology background is in line with company’s strategy to pursue partnerships for taking forward its autonomous and electric vehicle programs, while also revamping the portfolio with stress on bigger vehicles.

Earlier this year, the company unveiled a ‘transformation strategy’ for the Ford brand in Europe, with the purpose of revamping the portfolio and increasing volume in the high-growth segments. Of late, the market has been witnessing a rapid shift to SUVs and pickup trucks from conventional passenger cars.

Russia’s passenger car market is hit by a slowdown due to the faltering economic recovery. With their spending power under pressure, customers prefer passenger cars with lower price tags to the expensive popular brands.

Ford’s stock traded notably lower during the early hours of Wednesday. The shares ended 2018 on a dismal note, hitting a ten-year low. However, they regained momentum this year and have risen about 10% so far.


We’re on Flipboard! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

Micron Earnings Preview: Recovery likely to continue as demand bounces back

Micron Technology Inc. (NASDAQ: MU), a market leader in memory and flash storage chips, emerged from a losing streak in the most recent quarter and reported a profit. The recovery

After mixed Q4, Darden Restaurants stays focused on profitable sales growth

Darden Restaurants, Inc. (NYSE: DRI), which owns popular restaurant brands Olive Garden and LongHorn Steakhouse, has reported stronger-than-expected fourth-quarter results, sending the stock higher soon after the announcement. Contributions from

What to expect when McCormick & Company (MKC) reports Q2 2024 earnings results

Shares of McCormick & Company, Incorporated (NYSE: MKC) stayed green on Friday. The stock has dropped 4% over the past one month. The spices and condiments maker is scheduled to report


  1. Pingback: Beverly Bultron
  2. Pingback: Arie Baisch
  3. Pingback: Cory Chase
  4. Pingback: best-domains
  5. Pingback: Click Here
  6. Pingback: Click Here
  7. Pingback: Click Here
  8. Pingback: Click Here
  9. Pingback: Click Here
  10. Pingback: Click Here
  11. Pingback: Click Here
  12. Pingback: Click Here
  13. Pingback: Click Here
  14. Pingback: Click Here
  15. Pingback: Click Here
  16. Pingback: Click Here
  17. Pingback: Click Here
  18. Pingback: Click Here
  19. Pingback: Click Here
  20. Pingback: Click Here
  21. Pingback: Click Here
  22. Pingback: Click Here
  23. Pingback: Click Here
  24. Pingback: Click Here
  25. Pingback: Click Here
  26. Pingback: Click Here
  27. Pingback: moveit studio
  28. Pingback: spaceros
  29. Pingback: Click Here
  30. Pingback: Click Here
  31. Pingback: Click Here
  32. Pingback: Click Here
  33. Pingback: Click Here
  34. Pingback: Click Here
  35. Pingback: Click Here
  36. Pingback: Click Here
  37. Pingback: Click Here
  38. Pingback: Click Here
  39. Pingback: Click Here
  40. Pingback: Click Here
  41. Pingback: Click Here
  42. Pingback: Click Here
  43. Pingback: Click Here
  44. Pingback: Click Here
  45. Pingback: Click Here
  46. Pingback: Click Here
  47. Pingback: Click Here
  48. Pingback: Click Here
  49. Pingback: Click Here
  50. Pingback: Click Here
  51. Pingback: Click Here
  52. Pingback: Click Here
  53. Pingback: Click Here
  54. Pingback: Click Here
  55. Pingback: Click Here
  56. Pingback: Click Here
  57. Pingback: Click Here
  58. Pingback: Click Here
  59. Pingback: Click Here
  60. Pingback: Click Here
  61. Pingback: Click Here
  62. Pingback: Click Here
  63. Pingback: Click Here
  64. Pingback: Click Here
  65. Pingback: Click Here
  66. Pingback: Click Here
  67. Pingback: Click Here
  68. Pingback: Click Here
  69. Pingback: Click Here
  70. Pingback: Click Here
  71. Pingback: Click Here
  72. Pingback: domain-name
  73. Pingback: Google reviews
  74. Pingback: 2023 Books
  75. Pingback: dying
  76. Pingback: death redcords
  77. Pingback: find a grave
  78. Pingback: Chirurgie Tunisie
  79. Pingback: Higher education
  80. Pingback: MBA
  81. Pingback: Economics
  82. Pingback: Political Science
  83. Pingback: Immunizations
  84. Pingback: Dental Education
  85. Pingback: Networking Events
  86. Pingback: Computer Science
  87. Pingback: student exchange
  88. Pingback: fue
  89. Pingback: fue
  90. Pingback: العقاقير
  91. Pingback: Refereed articles
  92. Pingback: fue
  93. Pingback: faculty of dental
  94. Pingback: MIS research
  95. Pingback: chest press
  96. Pingback: pec deck inversé
  97. Pingback: cortexi
  98. Pingback: Fiverr Earn
  99. Pingback:
  100. Pingback:
  101. Pingback:
  102. Pingback:
  103. Pingback:
  104. Pingback: 3pl Broker
  105. Pingback: clima hoy
  106. Pingback:
  107. Pingback: french bulldog
  108. Pingback: exotic bully
  109. Pingback: jute vs sisal rug
  110. Pingback: Safe Piano Removal
  111. Pingback: frenchie jewelry
  112. Pingback: future university
  113. Pingback: future university
  114. Pingback: FiverrEarn
  115. Pingback: Fiverr
  116. Pingback: fue
  117. Pingback: french bulldog
  118. Pingback: FUE
  119. Pingback: Furniture handling
  120. Pingback: Moving logistics
  121. Pingback: FiverrEarn
  122. Pingback: FiverrEarn
  123. Pingback: FiverrEarn
  124. Pingback: FiverrEarn
  125. Pingback: Media
  126. Pingback: FiverrEarn
  127. Pingback: partners
  128. Pingback: Public Policy
  129. Pingback: FiverrEarn
  130. Pingback: FiverrEarn
  131. Pingback: FiverrEarn
  132. Pingback: live sex cams
  133. Pingback: FiverrEarn
  134. Pingback: FiverrEarn
  135. Pingback: FiverrEarn
  136. Pingback: FiverrEarn
  137. Pingback: FiverrEarn
  138. Pingback: FiverrEarn
  139. Pingback: FiverrEarn
  140. Pingback: FiverrEarn
  141. Pingback: FiverrEarn
  142. Pingback: serialebi qaerulad
  143. Pingback: Farming
  144. Pingback: digital marketing
  145. Pingback: technology
  146. Pingback: FiverrEarn
  147. Pingback: cheap sex cams
  148. Pingback:
  149. Pingback: live sex cams
  150. Pingback: frt trigger
  151. Pingback: laundry online
  152. Pingback: 늑대닷컴
  153. Pingback: Agen judi online
  154. Pingback: nangs near me
  155. Pingback: allgame
  156. Pingback: 918kiss
  157. Pingback: หวย24
  158. Pingback: Beauty Of Joseon
  159. Pingback: pg slot
  160. Pingback: carte uno reverse
  161. Pingback: cybersécurité
  162. Pingback: aplikasi slot
  163. Pingback: megagame
  164. Pingback: electronic visa
  165. Pingback: sicarios
  166. Pingback: itsMasum.Com
  167. Pingback: itsMasum.Com
  168. Pingback: Skywhip tanks
  169. Pingback: Plombier Tours
  170. Pingback: url
  171. Pingback:
  172. Pingback:
  173. Pingback: chatting sites
  174. Pingback: boys chat
  175. Pingback: joker gaming
  176. Pingback: melbourne jobs
  177. Pingback: newyork jobs
Add Comment
Viewing Highlight