Ford to Build New Focus in Russia
| Ford 23 Mar 2006 15:04 GMT | Page rating:  |
Savvy car buyers in Russia will soon be able to trade in their Lada for the new Ford Focus. Ford is investing $50 million in upgrading its Vsevolozhsk assembly plant near Saint Petersburg to produce the new Ford Focus, introduced earlier this year in the rest of Europe.
The decision on Ford's part is a strategic move toward the company's goal of becoming the best-selling international manufacturer in Russia. The Focus, based on the pre-2004 model is already the best-selling car in Russia from a non-domestic producer.
One key to the popularity of the Focus is the Vsevolozhsk plant. Russia levies a 25 percent tariff on imported automobiles. By assembling the Focus in Russia and using some local suppliers for parts, Ford can keep the price competitive with domestic Russian brands.
Along with competitive pricing, the new Focus also appeals to the growing sophistication of the Russian market.
In Russia, as in much of Europe, the Focus has a more upscale image than the car has in the United States. Indeed, the European Focus is not the same car for sale in America. The European version is based on the same platform as the Mazda3.
In a related development, General Motors has begun production of a competing car, the Chevrolet Viva, through its joint venture with Russian auto giant AVTOVAZ (maker of the Lada.) The Viva is based on the existing Opel Astra.
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