MOSCOW, Aug. 20 -- Ford Motor Company on Monday announced plans to open an assembly line in its factory in northwest Russia in January, the official RIA Novosti news agency reported.
The factory would put together Volvos and Land Rovers, general director Murray Gilbert told the agency.
The official added that the facility in the Leningrad region's town of Vsevolozhsk was equipped to start mass production, but the fulfillment of the concept still required the management to "take a lot of steps."
Ford also plans to put its Ford Focus model on the Russian assembly line early next year.
According to Gilbert, the first two Ford Focus vehicles were assembled this week by the Russian workers at the company's plant in Valencia, Spain.
"Sedan" and "Universal" models of the Focus line will be shipped soon from Spain to Russia to undergo a series of performance tests.
Ford's designers took into account peculiarities of the Russian climate, road conditions and other relevant parameters that might affect the vehicles' performance.
The company expects to test between 200 and 500 cars in Russia by the end of this year.
If the test results are satisfactory, the mass output will start simultaneously with Volvo and Land Rover production.
The management of Russia's Ford branch believes that the launch of the production locally will subsequently help decrease the price of Focus models in the Russian market.
Currently, Ford's Moscow dealers sell Ford Focus at an average price of $14,500 to $15,500.
Moreover, Ford is interested in cooperation with Russian car makers who could supply parts for the vehicles.
On Monday, Gilbert confirmed that the Vsevolozhsk factory had signed contracts for parts delivery with several Russian producers.
According to the deals, Russian manufacturers will supply glass, shock absorbers, sprinklers and mats whose price amounts to a total of $400.
Over a five-year period, the company plans to increase participation of the Russian manufacturers with Russian-made parts and accessories making up one half of the car's value.
Gilbert declined to name any existing or potential Russian business partners.
However, the factory's press service told RIA Novosti that glass for Ford Focus vehicles could be produced by the Bor glass factory in the Nizhegorodskaya region.NEWLN:
