Ford to exit Russia after joint venture stake sale

Ford to exit Russia after joint venture stake sale

Ford Motor Co said it would exit Russia as it has finalized a deal to sell its 49% stake in the Russia-based Sollers Ford joint venture for a "nominal" undisclosed price.

The U.S. automaker took a $122 million writedown connected to its suspension of Russian operations earlier this year but will not take additional writedowns in connection with Wednesday's announcement, the company said.

"Ford shares will be transferred to the Joint Venture for a nominal value," the company said, adding that it retains the option to buy them back within a 5-year period "should the global situation change."

Ford sold around 20,000 vehicles in Russia in 2021, according to analyst estimates. It announced a suspension of its operations in Russia in March.

Ford in 2019 said the joint venture was closing two assembly plants and an engine factory in Russia, exiting the country’s passenger vehicle market. Ford restructured its investment in Russia in 2019 and ceded control the venture to Sollers.