Causes of Loss Competitivenesses of the Company Ford in the Russian Federation

Alexander V. Butov ()

International Trade and Trade Policy, 2020, issue 4

Abstract: The departure of large foreign car manufacturers from the Russian market negatively affects all partners and interested parties car dealers, suppliers, employees, buyers and fans of brands of departed companies. This departure became even more painful for Ford itself, which leaves the domestic market with a loss of $ 500 million, which is 14% of the total annual profit of Ford Motor Co. in 2018 This sad event was caused by a number of circumstances: the consequences of the global financial crisis, the devaluation of the national currency, the decline in sales in the Russian car market, company errors in pricing, marketing policies and updating the model range, in assessing the prospects for marketing products and creating excess production capacities, as well as refusal to independently manage Russian business and the choice for this Russian partner in a joint venture. A close study of the reasons that forced the recent leader of the Russian car market to Ford to close its car factories and stop selling them in Russia is presented in the article. Particular attention is paid to the development of the domestic car market, the development of effective competition strategies in the face of falling household incomes and rising product prices, state support for the domestic auto industry, as well as the specifics of creating joint ventures in the Russian Federation and assessing the resource capabilities of joint venture partners.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:acl:journl:y:2020:id:340

DOI: 10.21686/2410-7395-2019-4-171-180

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