Ford Exits Russia, Sells All Assets After Seven Month Hiatus

Seven months after it halted production at its Russian plants, Ford has announced that it will quit the market entirely. The American automaker says it has finalized its exit from the market by selling its 49 percent stake in the Sollers Ford joint venture.

Back in March, a number of foreign automakers, including Ford, halted operations in the country in response to its invasion of Ukraine and subsequent sanctions from the United States and other countries. At the time, Ford halted its manufacturing, the supply of parts, as well as its IT and engineering support.

“We at Ford are deeply concerned about the invasion of Ukraine by Russia and the safety of the Ukrainian people,” wrote Ford CEO Jim Farley, at the time. “Effective immediately, Ford is suspending our limited operations in Russia and taking action to support the Global Giving Ukraine Relief Fund.”

More: Ford Set To Exit Passenger Car Market In Russia

Ford now says that it is selling its shares in Sollers Ford to the joint venture “for a nominal value.” Like others, the automaker has retained the option to buy the shares back in the next five years if the “global situation changes.”

That is a similar tactic taken by Nissan, which sold its shares in the market to NAMI, Russia’s central research and development automobile and engine institute, for the equivalent of less than a dollar. Although it lost $687 million in the deal, it also retained the option to buy its share back in the next six years should the global situation change.

Ford may be less likely to buy its shares back, though, because it has been winding down its operations in the country since 2019. At that time, the automaker said it was ceasing production of passenger vehicles to focus entirely on growing its commercial vehicle business in the market, where it was the best-selling non-domestic manufacturer.

The joint venture was set up in 2011, with three factories producing Ford vehicles. Sollers Ford made the Focus, Mondeo, EcoSport, Fiesta, and Explorer for the local market until 2019, and the Transit until 2022.