Ford Plans to Raise Production, Expand Model Range in Russia
Ford Motor Co. plans to raise production levels in Russia and broaden its line-up in the country as the second-biggest U.S. carmaker works to strengthen its core brand in Europe.
“Russia is a really important market for us,” Chief Executive Officer Alan Mulally said in an interview at the Paris Motor Show today. “We’re going to continue to bring more products to the Russian customers.”
Mulally, 65, aims to improve quality and boost margins in a portfolio focused on the Ford marquee, a strategy which has helped the manufacturer post its biggest first-half profit in 12 years. Government incentives are helping the Russian car market rebound after suffering the worst collapse in more than six decades last year. New-car sales jumped 51 percent in August from a year earlier. Ford benefits from local production in Russia due to tariffs from the government on imported cars.
Dearborn, Michigan-based Ford is willing to sacrifice market share in Europe if that allows the company to sell cars with more extras at a better margin, Mulally said. Cutting back nameplates and brands, which Mulally has done in recent years to boost profitability, won’t mean Ford will exit any model segments, he said.
The company is showing its high-performance Focus ST compact at the Paris show.
To contact the reporter on this story: Cornelius Rahn in Frankfurt at crahn2@bloomberg.net
To contact the editor responsible for this story: Kenneth Wong in Berlin at kwong11@bloomberg.net
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