Ford's Russia Woes Could Affect European Operations Negatively

According to the latest report by the Association of European Business, sales of new cars and light commercial vehicles (LCVs) in Russia dropped by nearly 26% in August on a year-over-year basis. The one hurt most by this decline has been Ford, which saw its August sales collapse by as much as 57% year-over-year and January-through-August sales decline by 43%. These numbers are extraordinary and cannot be explained by an industry-wide slump. In contrast to Ford, sales of Hyundai was down by 6% and sales of Nissan was down by 5%. As a result of this poor performance, Ford’s market share for the January-August period was only 2.5% compared to the 3.9% market share last year and 4.5% market share two years ago.
Source: Markets