By Brooks M. Deering, The Chicago Times
October 27, 2022
DEARBORN, MI – Ford Motor Company announced Wednesday that it will exit Russia in response to the prolonged Russian invasion of Ukraine.
Ford representatives said a deal has been finalized to sell its 49% stake in the Russian based Sollers Ford, a joint venture between Ford and Russian automobile company Sollers, for an undisclosed price. However, Ford will retain an option to repurchase the shares within a five year period.
Ford took a $122 million writedown in connection to its suspension of Russian operations earlier this year but does not expect to take an additional writedown in connection with the sale to Sollers.
In 2019, Ford ceded control of the joint venture to Sollers Ford and closed two assembly plants and an engine factory in preparation to exit the passenger vehicle market.
French automaker Renault recently sold its stake in an assembly plant in Moscow to the Russian state for one ruble with an option to repurchase its stake within six years.