U.S. auto giant Ford has launched production of new S-MAX and Galaxy minivan models and the new Kuga and Explorer offroader models in Russia on Tuesday under its joint venture with Russian carmaker Sollers, Ford-Sollers said.
“Today we announce the launch of Kuga, S-MAX and Galaxy model production and [output launch] of our flagship product – Ford Explorer at the Yelabuga plant [in the Tatarstan republic]. We are very pleased with this, taking into account the growing demand for Ford sport utility vehicles on the Russian market,” Ford-Sollers First Vice President Adil Shirinov was quoted in a statement as saying.
The joint venture is going to create over 850 new jobs at its plant located in the Alabuga special economic zone, in addition to the current staff of 1,165, due to the production of new models.
Sollers and Ford signed an agreement to set up the joint venture in February 2011. The two companies have invested 18 billion rubles ($551.4 million) each in the venture. The Yelabuga plant made only Ford Transit vans until Tuesday which production exceeded 5,000 vehicles.
The venture covers production capacities in the Leningrad region, where Ford has a plant, and in Naberezhniye Chelny and the Tatarstan republic on the Volga, where Sollers has factories.