Ford said it has a significant number of Ukrainians working at the company globally. Amid the ongoing war, the company promises to provide continuous support to the people.
By Ibukun Ogundare
Updated
3 mins read
A lot of countries and organizations are cutting ties with Russia, and Ford Motor Company (NYSE: F) has joined the list. On the 1st of March, Ford suspended its joint-venture operation in Russia following Ukraine’s invasion. The automobile company said it has informed its partner, a Russian automobile company called Sollers, about its decision. In a statement, Ford revealed that it is “deeply concerned” about the Ukraine invasion, which has led to a lack of peace.
The Ukraine invasion by Russia is a worrisome case, and the general support is with the people of Ukraine. At the same time, western countries have issued sanctions on Russia. The US government has restricted its citizens from conducting any transaction with the Central Bank of Russia and others.
Ford said it has significantly reduced its operations in Russia over the past years. Currently, its operations are based on the manufacturing of commercial vans and sales via a minority interest in its joint venture partner, Sollers. In a statement, the automaker declared:
“Given the situation, we have today informed our JV partners that we are suspending our operations in Russia, effective immediately, until further notice.”
Speaking further, Ford said it has a significant number of Ukrainians working at the company globally. Amid the ongoing crisis, the company promises to provide continuous support to the people. The Ford Fund is donating $100,000 to the Global Giving Ukraine Relief Fund. The fund will assist Ukrainian citizens and their families during this challenging time.
Ahead of Ford, General Motors (NYSE: GM) has also halted sales and operations in Russia. The company majorly exited Russia in 2015 and sold a portion of its joint venture in the country in 2019. As February ended, General Motors also stopped exporting its vehicles to Russia. GM said operations would be on hold till further notice. Some of the vehicles the company exports to Russia include the South Korea-made Chevrolet Trailblazer, US-made Cadillac XT4, XT5, XTG and Escalade, and Chevrolet Traverse and Tahoe. Annually, General Motors sells about 3,000 vehicles in Russia.
As more companies truncated relationships with Russia, Swedish luxury vehicles company Volvo Cars also halted shipments to Russia. Like other companies, Volvo Cars said its decision stands until further notice. Due to the invasion of Ukraine, AB Volvo has also discontinued its production and sales in Russia. At the same time, German Daimler Truck is also freezing business activities in Russia. The same goes with Jaguar Land Rover and Volkswagen, which recently suspended shipments to Russia.
Jeep and Peugeot parent Stellantis NV is also planning to start a fund supporting Ukrainian refugees.
With a market cap of $70.31 billion, Ford is currently at a premarket trading price of $16.94. The automaker has gained more than 37% over the past year.
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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
