Sollers Service Management (formerly Ford Sollers)

Ford Sollers is a Russian company producing 7 localized models of Ford cars, as well as a line of special vehicles. Owns 4 factories and a full-scale R&D center dedicated to adapting and localizing Ford cars.

Ford Sollers produces Ford Focus and Ford Mondeo cars at the Vsevolozhsk plant near St. Petersburg; Ford Explorer, Ford Kuga, and Ford Transit's full-cycle commercial vehicle line in Yelabuga; Ford Fiesta and Ford EcoSport in Naberezhnye Chelny. Each Ford car assembled in Russia passes quality control in accordance with world standards of Ford Motor Company.

The Ford Sollers plant in Vsevolozhsk is the first full-cycle foreign brand in Russia, the production of Ford Focus started in 2002. The plant currently produces Ford Focus in three body types (sedan, hatchback, station wagon) and Ford Mondeo business sedan. The high quality of cars produced in Vsevolozhsk is ensured by a strict quality control system in accordance with Ford global standards. The company has installed the most modern equipment, including robots and various test benches, and also has its own track for checking finished products.

2023: Name change

In March 2023, the legal entity of the former joint venture of the automotive group "Sollers" and the American automaker Ford in the Russian Federation (Sollers Ford LLC) was renamed Sollers Service Management LLC and will continue warranty service for light trucks. Ford Transit

2022: Ford exits JV and sells its 49% stake

At the end of October 2022, Ford announced its withdrawal from a joint venture with Sollers by selling its 49 percent stake to a Russian group. Thus, the American automaker finally left the Russian market.

The financial terms of the transaction were not disclosed. Ford only noted that Sollers Ford will receive a stake in the joint venture at face value. Ford clarified that they reserve the right to redeem the shares sold within five years.

Ford left the joint venture with the Sollers group

Sources of Kommersant told the newspaper that they did not understand the purpose of the option. Renault has the same opportunity for a stake in AvtoVAZ and Nissan for production in St. Petersburg. According to the interlocutors of the publication, in the case of Nissan, this "was to a greater extent the desire of Russian officials."

Automotive expert Vladimir Bespalov considers it low probability that the share is estimated, as in 2019, at hundreds of millions of dollars, taking into account the shutdown of the plant and unclear prospects for resumption. He believes that in general, the intergovernmental commission could not approve Sollers of the withdrawal of a large amount of funds from the Russian Federation to pay for Ford's exit. In addition, he notes, the option tends to lower the price.

Ford suspended work in Russia in March 2022 after the start of the Russian military special operation in Ukraine. Then not only production was suspended, but also the supply of parts, as well as engineering and IT support.

The last few years before that, the American company assembled only the Ford Transit model in Russia. Production was carried out at a plant in Yelabuga. It was decided to sell the other two plants, in Vsevolozhsk and Naberezhnye Chelny, in 2019.

In January-September 2022, Ford Transit sales fell 62% compared to the same period in 2021, according to the Association of European Businesses^[1]

2019: Leaving the Russian market

In April 2019, the Ford Sollers joint venture announced the actual withdrawal of the American automaker from the Russian market. Production in Russia and the import of passenger cars were stopped, two car factories were closed. Only the third works - in Tatarstan, it produces light commercial vehicles Ford Transit. On its basis, a new joint venture Ford Sollers was created, but with control from a Russian partner.

Ford followed the example of another American automaker - General Motors (GM), which, due to a decline in sales in Russia and a weakening ruble, mothballed a plant in St. Petersburg in 2015, and also stopped importing all Opel and mass models Chevrolet, while maintaining joint production with AvtoVAZ Chevrolet Niva. GM then compensated all Russian dealers for part of the investment in salons. In total, the company allocated about $600 million for business restructuring in Russia. Large dealers received several tens of millions of rubles, recalls one of them.

2011: Start of Operations

On October 1, 2011, Ford Motor Company and Sollers announced: a joint venture in Russia with equal participation of the parties officially begins operations.

Ford Motor Company

Ford Motor Company is a global leader in the automotive industry, making and selling cars on six continents. The company is headquartered in Dearborn (USA, Michigan). 70 plants are located around the world. The number of employees is about 166,000. The company represents Ford and Lincoln car brands. Financial services are provided through Ford Motor Credit Company.

Sollers

Sollers is a Russian automobile company that represents a full range of services in the automotive sector - from the production of cars to their sale and service. The company owns five automotive enterprises in Russia, an engine plant, as well as a network of dealerships and a financial services division, in total, about 20 thousand employees are employed at all enterprises. In addition to developing its own products, the company successfully implements cooperation projects with international automakers. At the end of 2010, the Sollers Group became the second largest Russian manufacturer of cars and light commercial vehicles with a total sales volume of 98 thousand units.

Ford Sollers Holding LLC is responsible for the import and sale of all Ford products including cars, parts and accessories on the Russian market.