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June 29, 2005
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Ford Increases Capacity At Its St. Petersburg Manufacturing Plant


Photo: Ford

Ford Focus

COLOGNE - Ford, the first global automaker to launch a production facility in Russia, will increase capacity of its car plant in St. Petersburg by 50 percent in order to meet growing customer demand for the new Ford Focus.

Launched in July 2002, the plant will have its annual capacity increased to 60,000 vehicles a year from January 2006, up from 40,000 now. The St. Petersburg facility recently started production of the new generation Ford Focus, Ford's top-selling vehicle in Europe . It is the only Ford plant in the world that builds the new Focus in all four body styles: in 3-door, 4-door, 5-door and wagon versions.

"Growth is a key part of Ford's strategy in Europe and this expansion represents an important step along that road," said John Fleming, Ford of Europe president and chief operating officer . "Russian consumers have demonstrated a huge desire for the new Focus. Now is the time to respond to that demand by increasing our manufacturing capacity."

 

The capacity increase also represents an important milestone in the ongoing development of the Russian auto industry. "Ford's roots in Russia date back nearly 100 years," said Fleming. "Even though other automakers have followed us into the market, Ford remains the biggest global auto investor in the country - something we intend to build on in the future."

Ford made an initial investment of $150 million to its plant in St. Petersburg . Subsequent expansions, including the addition of second and third shifts, upgraded equipment and establishment of a central Parts Depot, have increased Ford's total investment to $200 million. The latest capacity increase will involve an additional investment of $30 million by mid-2006.

The St. Petersburg facility is Ford's newest manufacturing site for the Focus, the top-selling vehicle for the Ford brand in Europe . The Focus is also produced at Valencia in Spain and Saarlouis in Germany.

Since its introduction in Russia , the Ford Focus has enjoyed considerable success. To meet the strong demand for the Focus, Ford added a third production shift at the plant in April 2004, increasing the site's employment by 420, to 1,570 people. With more than 28,000 units sold in 2004, the Focus was the best-selling model among foreign brands in Russia for the second consecutive year. In February 2005 the 50,000 th Ford Focus rolled off the St. Petersburg assembly line.

"This capacity increase should be seen as a strong endorsement of our manufacturing operations in St. Petersburg ," added John Fleming. "We are extremely pleased with the high quality of vehicles produced, as well as the plant's ability to match the exacting standards achieved in our long-standing operations in Western Europe . This is a testament to the well-trained, highly educated workforce we are fortunate to have in St. Petersburg."

Ford has also had broader sales success in Russia . Through the first five months of 2005, Ford sales were 15,900 units, an increase of some 30 percent increase over the same period of 2004. Ford sold 38,700 vehicles in Russia in 2004, an increase of nearly 90 percent over the previous year. Market share increased to 11.5 percent in 2004, from 10.5 percent in 2003.

(June 23, 2005)

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