Ford Exits the Russian Market and Joins the Exodus of Automakers

Ford is completely pulling out of a market where it was once a pioneer amid Western sanctions over the Ukraine invasion.

FREMONT, CA: Ford (F: NYSE) terminated its activities in Russia earlier this year after Moscow invaded Ukraine when it sold its 49 per cent ownership in the Sollers Ford joint venture. A Ford spokesperson said that shares of the automaker will be transferred to the company for a minimal fee of one Euro  each.

Should the world circumstances alter, the corporation will still have the opportunity to buy the shares back within five years. Ford had already stopped the production of commercial vans, the sale of parts, the use of information technology, and engineering assistance in Russia. It completely withdrew from Russia, joining Mercedes-Benz, Nissan, and Toyota in doing so.

The last three years have seen a reduction in the extent of Ford's operations in Russia. Only 22,000 of its vehicles, including those branded with the Ford logo and made by an unconsolidated affiliate, were sold there in the past year.

The safety of the Ukrainian people and the Russian invasion of Ukraine are major concerns for Ford, according to CEO Jim Farley's tweet from March. Ford had announced in 2019 that it was closing three facilities in Russia, exiting a once-pioneering auto market to concentrate on light commercial vehicles as part of a larger restructuring of its loss-making European business.

A slowing in the economy and Western sanctions, which many automakers had long considered to be a significant growth market, led to that choice.