Ford, Renault to Cut Russian Production as Market Tumbles

VIENNA – Ford Motor Co. and Renault SA plan to cut output at their Russian plants as sales continue to fall.

Renault says it will discontinue the third shift at its OAO Avtoframos joint-venture operation in Moscow starting May 1.

"Following a fall of 40% in the Russian auto market in the first quarter, Renault saw its own sales fall 38%," the French auto maker says in a statement.

Sales of the Renault Logan, the only car manufactured at Avtoframos, plunged 46.5% to 9,668 units.

Renault says it does not plan to cut jobs. Instead, workers from the night shift will switch to the two day shifts, which have vacancies.

The auto maker imposed a hiring freeze in November and cut some outsourcing programs.

ZAO Ford Motor Co., the Russian Ford plant based in Vsevolozhsk, says it will suspend Friday operation from June 8 to Oct. 5. The plant manufactures Focus and Mondeo cars.

The factory’s union is protesting the proposed 4-day workweek and has filed a complaint with the district attorney.

Ford, the No.3 brand in Russia behind Lada and Chevrolet, sold 29,956 new cars in the year’s first three months, down 27.8% from like-2008.

The auto maker delivered 17,742 Focus units, Russia’s top-selling foreign model, in the timeframe, down 4.2%.

The drop in Focus sales is moderate compared with most other top-selling models, which saw double-digit declines in first-quarter deliveries.

Renault’s Avtoframos and Ford’s Vsevolozhsk plants ceased production for some weeks this winter.