Ford joins the growing list of companies halting operations in Russia amidst the war

Ford Motors is suspending operations in Russia amidst the Russian invasion of Ukraine. The company has also informed its joint venture partner, Sollers, about the decision.

‘Ford has no significant operations in Ukraine,’ said the company.

The company has also made a $100,000 contribution to the Global Giving Ukraine Relief Fund to help the suffering families in Ukraine.

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

With the operations suspension decision, Ford Inc. joins an increasing group of companies pausing operations or leaving Russia. Harley-Davidson Inc. and General Motors were the first car manufacturers who halted their operations in the warring country.

“Milwaukee-based Harley-Davidson announced today it is suspending its business in Russia, including bikes”, TMJ4 Tweeted.

 

Not just them, giant players from different industries, including Shell Plc,  BP Plc and Apple Inc., were reported making similar decisions.

“Shell will exit all its Russian operations, including a major liquefied natural gas plant, becoming the latest major Western energy company to quit the oil-rich country”, Reuter Tweeted.

Ford Motors’ business in Russia has been downsized over the past three years. Last year the company sold only 22,000 vehicles, including Ford-branded vehicles by unconsolidated affiliates, revealed the regulatory filings.

In 2019, the company pulled out from the Russian car market, where once it was a pioneer, after shutting down three manufacturing facilities as part of its money-losing European operations. The downsizing decision came after western sanctions faded the outlook for what several car giants had long viewed as a ‘key growth market’.

However, Russia has never been a profitable market for American carmakers. General Motors was able to sell just 3000 units of Cadillac luxury SUVs in the country.

While scrutinizing unprofitable operations in 2015, General Motors had closed down its facilities in St. Petersburg and just left small retail to sell premium models.

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