(Bloomberg) -- Ford Motor (NYSE:F) Co. may close two of its three assembly plants in Russia as part of a restructuring of its money-losing business operations in the country, according to a person familiar with the matter.
The automaker, which operates a joint venture in Russia with local automaker Sollers, plans to make an announcement about the future of its operations there on Wednesday, the person said. Ford is likely to close one passenger-car factory near St. Petersburg and another in the Tatarstan region, but continue producing commercial vehicles at a third plant, said the person.
Moscow-based Sollers said in a statement that the two companies have reached a new agreement on the future of their venture and are finalizing details. Ford announced it was putting the business under review in January as part of a broader restructuring in a region that’s dragged on earnings for years. The Dearborn, Michigan-based company is also ceasing production at a French transmission factory, reducing its German staff by more than 5,000 people and cutting an unspecified number of jobs in the U.K.
Ford’s 50-50 joint venture with Sollers dates to 2011 and currently manufactures seven models, according to FordSollers’ website. The plant near St. Petersburg builds the Focus and Mondeo models, and the Tatarstan facility in Naberezhnye Chelny makes the Fiesta and Ecosport crossover. Ford also has an engine plant and third assembly factory in the Tatarstan region in the town of Elabuga, which produces the Kuga crossover, Explorer SUV and Transit light commercial vehicles.