As we all know, the Russian invasion of Ukraine has had an impact on the automotive industry on a large scale. Ford, BMW, Daimler-Benz, and many others announced halting their operations in Russia showing a form of support to the Ukrainian people.

Ford is one of the most popular brands in Europe and the US, offering a wide range of vehicles that accommodate a wide array of consumers. They don’t just make cars, but they’re also budget-oriented workhorses. Ford joined forces with the Russian corporation Sollers, merging into a single company that operates in manufacturing, importing, and distributing Ford products. Ford itself has a 50% stake in the company, which might sound like a bad financial decision for Ford’s Corporation pocket. Put simply, the auto industry is not directly shooting up against Putin, but they are indirectly causing bottlenecks in the Russian economy to pull out of war.

Let’s find out more about Ford’s decision to halt operations in Russia.

Related: How Western Sanctions Affect Volkswagen, Stellantis, And Renault Plants In Russia

Ford In Russia

Ford Mustang Mach-E, E-Transit, and F-150 Lightning in one frame
Via: Media.ford.com

Ford operates in three locations in Russia - Saint Petersburg, Yelabuga and Naberezhny Chelny. Here is where Ford has assembled some of their most popular nameplates like Ford Focus, Mondeo, Transit, Explorer, EcoSport, and Fiesta. That’s nearly half the brand product lines assembled in Russia. Back in 2019, Ford decided to drop most of the nameplates from being assembled in Russia and focusing only on the production of Vans.

The Ford Transit is one of the most popular vans in Europe and the US. Halting operations in one of the most sold vans will be a tough “sanction” on the Russian side. It doesn’t just end there, Ford is also banning all exports to Russia - together with a long list of the most popular car brands featuring Toyota, VW, Mercedes, BMW, and a lot more. It seems like the Russian car community will have to work around with their Slavic Ladas and undefeatable Gaz.

In a statement to Bloomberg, Ford spokesperson said: “As part of the global community, Ford is deeply concerned about the invasion of Ukraine and the resultant threats to peace and stability,” the company said in the statement. “The situation has compelled us to reassess our operations in Russia”.

Related: This Ford Transit Raptor Looks Way Cooler Than It Should

Ford Operations Are Bottlenecking In Western Europe

Ford-Russia-002

On top of halting operations on its Russian border sides, it makes economic sense for the automotive giants to pull out of Russia. To start with, the Volkswagen case where most of its production plants are being held at idle or put to stop because of the wiring harness problem - companies that built these units were located in Ukraine, where the war threat bottlenecked their daily operations. Luckily, Ford halting Russian operations does not affect most of their nameplates and the vans will be assembled elsewhere.