Vladimir Shlyomin

T

ies between the Ford Motor Com-pany and Russia have a successful history of many years. In 1907, just three years after the company was founded, Ford Motor sent its first dealer to Russia. In a few years it shipped 400 motor cars here. In 1925 Ford Motor sold Russia 11,140 motor vehicles. The major portion of these shipments fell on Fordson tractors, which were highly popular in the country. Five years later an enterprise to assemble the company’s trucks based on the popular A model began its operation in the city of Nizhny Novgorod. From that moment on one of the country’s leading automobile plants started its formation process.
"Recently, there has been a particularly active expansion of our company’s operations in Russia", says John Fleming, the vice president of the Ford Motor Company for production in Europe. "We have concluded that it is necessary to support Russian admirers of our brand. And in this sense the decision to raise our presence in the Russian market to a qualitatively new level is a far-sighted and strategically right move", he notes.
Fleming believes that as an exporting company with an experience of many years, Ford Motor’s positions in the Russian market were not bad. But, nevertheless, the growth potential was not properly used because the company lacked a production base. "The time has come to make investments in a plant with the world level quality that would make an outstanding automobile for Russian consumer", says John Fleming. In July 1999 the company signed an investment agreement with the Russian government to set up a world class automobile plant on the basis of available production capacities. In Fleming’s words, Ford Motor’s representatives "were impressed by the support of the Russian government and regional administration" that made it real to hope for "a long and fruitful work with Russian consumers".
The Ford Motor Plant based in the city of Vsevolozhsk near Saint Petersburg was officially opened on July 9, 2002. This is the first enterprise in Russia, which is wholly owned by a major foreign company and is managed by it.
The investments amounted to $150M. The plant’s planned production capacity is equal to 25,000 automobiles a year (the enterprise is expected to reach this level in December 2003) with a possible increase in production up to 100,000 automobiles. It assembles Ford Focus, one of the world’s most popular models. The car’s body has three modifications (universal, sedan and hatchback) and three types of engine (with volumes of 1.6, 1.8 and 2 liters).
Because of the high and ever increasing demand in the Russian market the company decided to introduce the second shift at the plant. The personnel’s number increased to 1,250 workers.
Recently, the Russian plant of the Ford Motor Company started producing Ford Focus of the 2004 model year. Changes in its design made on the basis of consumer preferences include ‘pockets’ on the front doors, seat mechanical adjustment in four directions, installation of passenger compartment filter and climate control device. There is also an option of getting leather covers for passenger compartments in the Ghia package.
"The year 2003 has become a memorable year for the plant because it has received an ISO 9001:200 quality certificate", says Murray Gilbert, the general director of the Ford Motor Plant. "In June we have become the first among 111 Ford Motor plants in the world, the activity of which is certified according to the new and most advanced version of this standard by the British independent Vehicle Certification Agency", he points out.

Russian Ford Motor plant

The Russian-made Ford Focus model has successfully passed a crush-test under the EuroNCAP methods scoring 12 points. This is the highest security mark among all motor cars, which were tested in Russia by the EuroNCAP methods. The testing has been carried out on Ford Focus sedan with the engine of a 1.6 liter volume (the Comfort package).
In order to make Ford automobiles even more affordable, the company is making efforts to reduce their prime cost. In particular, it is actively looking for ways to secure localization of componentry supplies. There are already contracts for direct shipments of components signed with Bor Glass Works JSC, one of Russia’s leading producer of automobile glass, and Elast Technologies (Saint Petersburg) that supplies automobile mats and mudguards. Besides, the company AvtoArmatura will provide battery components and Intercos-IV of Saint Petersburg is to start making cable brackets. Continental Plast LLC (Saint Petersburg) will supply plastic components such as buckets for window washers, casings for driving belt of engine’s gas-distributing gear and radiator straps while sentrspirtprompererabotka (Moscow region) will supply fluid for window cleaning. Also, the AvtoAgregat Plant (city of Lyvny, Orlov region) will take care of automobile filters, Packard Electric Systems/Samarskaya Kabelnaya Kompaniya (city of Samara) will provide wires for tail lights and compartment lighting and the company NaiPro (Moscow) will ensure supplies of plastic components for engine’s air filter.
"All these components have passed necessary testing and met requirements of Ford Motor", Murray Gilbert noted.
This year Ford Motor is marking its 100th anniversary. Reminding of this remarkable event president of the Ford Motor Company in Russia Henrick Nenzen said: "Ford Motor remains committed to its obligations to provide markets with its best products, to ensure the highest quality and consumer value of automobiles. Ford Focus is an adequate proof of these words and a key to our success in the Russian market".