In order to meet the mounting demand in the Russian market,
Ford Sollers, the joint venture between
Ford Motor Co.
) and Sollers, is adding new vehicles to its production lineup in
the nation. The company will be producing the Ford EcoSport sport
utility vehicle (SUV) at the Naberezhnye Chelny, Tatarstan
vehicle assembly plant from 2014. The automaker also announced
that it will be manufacturing the Ford Edge crossover SUV in the
Ford Sollers assembly plant located at Elabuga, Tatarstan from
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The Naberezhnye Chelny plant is the third manufacturing plant of
Ford Sollers in Russia. It will be operational from 2014.
Ford's other two facilities in the region are located at
Vsevolozhsk in Lenigradskaya Oblast and Elabuga in Tatarstan. The
addition of Ford EcoSport and Ford Edge will complement the
existing lineup of Ford's vehicles, including Ford Explorer and
Ford Kuga, in Russia.
Ford EcoSport combines the benefits of a small car and an SUV to
provide speed, fuel economy, flexibility, legroom and stylish
looks. The vehicle features a 1.6-liter or 2.0-liter engine with
the option of either manual or automatic transmission. The
vehicle is equipped with Electronic Stability Program, Hill
Launch Assist, SYNC voice-activated in-car connectivity system
and Keyless Entry & Start system driver assistance
Ford Edge features a 3.5-liter engine with automatic transmission
and Intelligent All-Wheel Drive. It will be sold in Russia from
the second half of next year.
Ford believes that this initiative will strengthen its brand
position in the Russian market. It will also be beneficial for
the Russian economy as the move is expected to create around 500
jobs in Tatarstan this year.
The Ford Sollers business has been very active ever since its
creation two years ago. This year, it has started the production
of Ford Explorer in the Elabuga plant. In addition, it initiated
the building of a new engine plant in Tatarstan by investing $274
million. Moreover, a R&D center was developed in Moscow, with
operations in the Leningradskaya Oblast and Tatarstan.
Ford currently has a Zacks Rank #2 (Buy). Other major automobile
stocks worth considering are
Honda Motor Co., Ltd.
General Motors Company
). Daimler is a Zacks Rank #1 (Strong Buy) stock, while the other
two carry a Zacks Rank #2 (Buy).