Saturday, September 20, 2014
 
Follow sptimesonline on Facebook Follow sptimesonline on Twitter Follow sptimesonline on RSS
MOST READ



PARTNER NEWS



BLOGS



OPINION



WHERE TO GO?

The Romanovs in St. Petersburg

History of St. Petersburg Museum

Small Tragedy, Fatal Passion

Rimsky-Korsakov Apartment Museum

 

Перевести на русский Перевести на русский Print this article Print this article

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

Saturday, Sept. 20


Starting on Sept. 18 and ending tomorrow is the Extreme Fantasy Wakeboarding Festival in Sunpark by Sredny Suzdalskoye lake in the Ozerki region of the city.


Those after something more laid back can instead head to Jazz and Wine night at TerraVino with legendary jazz guitarist Ildar Kazahanov. 12/14 Admiralteyskaya Emb.



Sunday, Sept. 21


Learn more about African culture and get some exercise during today’s “Djembe and Vuvuzela,” a bike ride starting in Palace Square that includes several stops where riders can listen to the music of Africa or watch short films about the continent. The riders plan to set off at 4 p.m. and all you need to join is a set of wheels.



Monday, Sept. 22


Do you love puppetry? If so, then be sure to go to BTK-Fest, a five-day festival that starts on Sept. 19 celebrating the art. Contemporaries from France, Belgium, the U.K. and other countries will join Russian artists to put on theatrical performances involving a variety of themes, materials and eras. Workshops and meetings are also scheduled for a chance to discuss the artistic medium in further depth.



Tuesday, Sept. 23


Marina Suhih, Director of the External Communications Department at Rostelecom North-West, and Yana Donskaya, HR Director for Northern Capital Gateway are just some of the confirmed participants of today’s round table discussion on “Interaction with Trade Unions” being hosted by SPIBA. Confirm your attendance with SPIBA by Sept. 22.


Kino Expo 2014, an international film industry convention, will be at LenExpo from today until Sept. 26. The third largest exhibition of film equipment in the world, the expo focuses on not only Russia but former Soviet republics as well.



Times Talk