Ford Wholly Owned Subsidiary

895 WordsJan 30, 20184 Pages
Worldwide in 2007, a total of 71.9 million new automobiles were sold. North America and Japan markets were sluggish, while those in parts of Asia and South America grew vigorously. The major markets that saw the most rapid growth were Russia, Brazil, and China. The most active division in the Russian economy is the automotive market. Russia is seen as one of the most promising automotive markets in all of Europe; with a population of approximately 140 million people. The reason is because the Russian market hasn’t reached its point of saturation yet. The Russia car buyers’ desire for premium products, but also a need for low-cost products, offers potential for the auto industry. At a glance Russia poses the following features for the automotive industry:  Sales potential of 5-6 million cars  Nearly overtook Germany in 2008 in new car sales volume  Less integrated with WE When the Russian automotive market deregulated in the late 1990s international companies began exporting into the Russian market. One of the main issues in Russia is the shortage of high-tech machineries, as outdated parts production is highly integrated into the operation of the national manufacturers. For this reason, Russia has adopted legislation to attract foreign investment with the long-term objective of making Russia a net exporter of vehicles. Between 2006 and 2008 the volume of foreign cars sold in Russian increased significantly. As of today, 11 foreign car makers have production operations
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