Ford Opens Assembly Plant in Russia

VSEVOLOZHSK, Russia, July 9 Reuters reported today that Ford Motor Co opened a $150 million assembly plant for its Focus model in northwestern Russia on Tuesday, saying it was optimistic about its future in the local market.

The plant, located in the Leningrad region, will assemble 25,000 cars per year and have the capacity to increase annual output to 100,000.

Prices will range between $10,900 and $18,300 with the hatchback version costing $10,900-$15,000.

"The quality/price ratio will be very good for the buyer," the president of Ford Motor Co for Russia and the CIS, Henrik Nensen, told a news conference.

He said an imported Ford Focus hatchback with a 1.6 litre engine cost $13,900. Nensen said market research showed some 350,000 Russians would buy a Focus at the local price. He added that Ford was also considering adding another model to the Focus.

"In six months we shall look at the situation and maybe add another model," Nensen said, but gave no further details.

Nensen said Ford hoped to double overall sales of Ford cars in Russia in 2002 to 7,800 and boost sales to 27,000 by 2005.

He added that Ford had increased its number of dealers in Russia to 70 from 21 over the last 18 months.