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Ford Credit Europe Announces Leasing Venture in Russia

15 April 1999

Ford Credit Europe Announces Leasing Venture in Russia

    ST. PETERSBURG, Russia, April 15 -- Ford Credit Europe (FCE),
the banking arm of Ford Motor Company , today announced the
establishment of a vehicle leasing venture in Russia.
    At a ceremony in St. Petersburg, FCE Bank plc and Sberbank, the largest
Russian commercial bank, signed a formal agreement of cooperation.
    This new venture will mean that businesses of all sizes will have access
to the Ford model range of vehicles through finance leases under the Ford
Credit umbrella.  Customer service will be handled by the Ford dealers in
Russia.
    Ford's long term ambition in Russia is to be the leading supplier of
automotive consumer products and to support this position Ford and Ford Credit
are now launching a long-term cooperation with Sberbank through their wholly
owned leasing subsidiary JSC "Ruste."  The program provides an opportunity for
Ruste to gain experience of western-style financing and product development,
using the services of FCE, part of the world's largest automotive finance
company.
    Ruste is already a significant player in the Russian leasing market and
this agreement further strengthens that position with enhanced product and
service development together with improved customer offerings.
    Nigel Brackenbury, General Director, Ford Motor Company LLC, said that
early signs indicate that the Russian vehicle market is stabilizing, although
on a lower level than pre-crisis, and that his sales division and the Ford
dealerships were looking forward to utilizing the new leasing plan --
especially with companies who need vehicles in order to expand.
    "Ford is preparing to invest a lot of money, time and above all energy to
make the Russian car market a success," he stated "we are still evaluating the
potential for possible production here in Russia and, to prove our long-term
commitment to the country, we are determined to provide affordable solutions
to vehicle financing as our first priority."
    Peter de Rousset-Hall, Executive Director of Ford Credit Europe, said this
move is one of the most important decisions that FCE Bank has made in the last
year in terms of its expansion plans into new and emerging automotive markets.
"I was proud of my colleagues in the Ford and Ford Credit office in Moscow
today, when I was able to sign this agreement," he added.  "The directors of
FCE Bank see this as the beginning of what will be a long and fruitful
relationship with one of the great names in Russian banking history."
    Vladimir A. Shorin, Chairman of St. Petersburg Bank of Savings Bank of RF,
said that the bank is very pleased that Ford Credit has chosen Sberbank as
their leasing partner for the Russian market.  "We hope that in addition to
our modest experience, the use of Ford Credit's financial methods and
technologies proved by their practical work in automotive leasing for many
years together with the training of our personnel, the marketing and
advertising support, will lead to improvement and development of Ruste
automotive leasing," he added.  "We hope that our partnership will be
productive and profitable and will enhance our customers' needs for modern
high-quality vehicles, manufactured by the world-famous Ford Motor Company."