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Ford Cuts 700 Jobs in St. Petersburg Plant

Published: April 3, 2014 (Issue # 1804)



  • Ford is cutting staff and output in Russia due to a shrinking market and weak ruble, following AvtoVAZ’s lead.
    Photo: Yekaterina Kuzmina / Vedomosti

U.S. carmaker Ford's joint venture in Russia has decided to trim staff and output at its two plants as the market is contracting and the ruble is losing value.

Ford has taken one of the biggest hits from the weakening demand. Sales of the joint venture, Ford Sollers, plummeted 18 percent last year, compared to 2012, and has continued to decline rapidly so far this year.

“We regret that the company has to reduce personnel. However, this measure is required to ensure the company's further development in current conditions,” Ford Sollers CEO Ted Cannis said in comments e-mailed by the company.

The joint venture is moving to single shift production at its plant in Vsevolozhsk, near St. Petersburg, as of June, cutting 700 jobs, or about a third of the workforce, it said. The plant, which makes the Focus compact car and the Mondeo sedan, will also halt production for several weeks in April, May and June, Vedomosti reported.

The other plant, in Yelabuga, Tatarstan, will lay off 250 temporary employees, Bloomberg reported. It will also move to a single-shift production schedule, Vedomosti said.

The Vsevolozhsk plant produced almost 69,000 cars last year, down 36 percent, while the Yelabuga plant produced 20,400 cars, up 300 percent, and 14,000 minivans, up 30 percent.

In cutting staff, Ford Sollers is following in the footsteps of AvtoVAZ, which also announced earlier this year that it was downsizing its workforce in the wake of a dramatic drop in sales last year.

Yet, Ford Sollers sounded upbeat about the future of its Russian operation, saying it still expected the country to become Europe’s largest auto market in the longer term.

The company commended itself for tapping the fast-growing sport utility vehicle, or SUV, segment last year by launching production of Explorer and Kuga in Yelabuga. This year, the company plans to start building the EcoSport small SUV and the new Transit commercial vehicle, it said. It is also on track to start production at a refurbished assembly plant in Naberezhnye Chelny in Tatarstan.

The new Focus and all-new Mondeo go into production in St. Petersburg in 2015, it said.





 


ALL ABOUT TOWN

Wednesday, July 30


SPIBA continues their series of Look@It tours, which focus on the success stories of major brands in the St. Petersburg market. Today’s event will focus on the Gorky Golf Club and will also be held there. For more details visit spiba.ru



Thursday, July 31


Develop your leadership abilities during a lecture by famous Russian author and coach Radislav Gandapas. The event starts at 9 a.m. at 5 Lodeinopolskaya Ulitsa. The price for entry is 20,500 rubles ($570).


Relax and enjoy a Parisian atmosphere with some romantic and laidback jazz tunes during the Night of French Music at Lenny Jam Cafe, 63 Ligovsky Prospekt. The entrance fee is 250 rubles ($7).


The Women’s Business Club is hosting a Beauty Brunch where participants are invited to discuss the latest news in the beauty industry and listen to lectures by professional stylists in the business.



Friday, Aug. 1


Bikers from all around the world will gather to take part in a parade, extreme shows and rock concerts during the International Biker Festival that revs its engines today and runs through Aug. 3 near Olgino Hotel, 4/2 Primorskogo Shosse.


The Peter and Paul Fortress will be turned into an open-air cinema today and tomorrow as part of the 5th International Short and Animation Film Festival. A huge screen across the fortress walls will air short films non-stop with board games, photo sessions and other activities also on offer for visitors. For more information, visit www.opencinemafest.ru



Saturday, Aug. 2


Gatchina Palace Park Museum will host its second annual Night of Light, an impressive audio-visual show across the night sky. Tickets are 600 rubles ($16).


If graphic design is more your thing then check out Illustration Day, where you will be able to visit an exhibition, attend lectures by professionals and even show experts some of your own work. The event starts at noon at Zona Deystvia, 73 Ligovsky Prospekt. The entrance fee is 350 rubles ($10).



Sunday, Aug. 3


History lovers shouldn’t miss the chance to see reenactments of World War I battles in Pushkin at noon. Besides exciting war scenes, visitors can enjoy live music, historical costumes, an equestrian show and a fancy-dress parade starting from the Moscow gates.


Garage Sale, the popular and growing flea market where nothing is priced over 500 rubles ($14.11), starts today at noon in Loft-Project Etagi, 74 Ligovsky Prospekt. Be sure to get in early to score a bargain. Entry costs 50 rubles ($1.40)



Monday, Aug. 4


Continue the working week with a calm and steady mind with a free yoga lesson at 7 p.m. in the Bukvoed store at 23A Vladimirsky Prospekt.



Tuesday, Aug. 5


Visit The Romanov Dynasty doll exhibition today, where more than fifty porcelain dolls depicting Russian rulers, and made by Olina Ventzel, will be on show. The exhibition continues through Aug. 31 in Sheremetyev Palace, 34 Fontanka Naberezhnaya.



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