Ford sells stake in Russian joint venture and heads for the exit

Ford has announced plans to exit Russia, eight months after Moscow invaded Ukraine, becoming the latest carmaker to sell up and leave.

Mercedes-Benz also on Wednesday said it would withdraw from the Russian market and sell shares in its industrial and financial services subsidiaries to a local investor.

Ford said it has finalised a deal to sell its 49% stake in the Russia-based Sollers Ford joint venture for a “nominal” undisclosed price.

The US carmaker took a $122m writedown connected to its suspension of Russian operations earlier in 2022, but will not take additional writedowns in connection with Wednesday's announcement, the company said.

“Ford shares will be transferred to the joint venture for a nominal value,” the company said, adding that it retains the option to buy them back within a five-year period “should the global situation change”.

Ford sold about 20,000 vehicles in Russia in 2021, according to analyst estimates. It announced a suspension of its operations in Russia in March.

Ford in 2019 said the joint venture was closing two assembly plants and an engine factory in Russia, exiting the country’s passenger vehicle market. Ford restructured its investment in Russia in 2019 and ceded control the venture to Sollers.

Ford follows US companies including Cisco Systems and Nike  in announcing an exit from Russia, after Western countries imposed sanctions on Moscow over its invasion of Ukraine, making it nearly impossible for manufacturers to do business there.

Reuters