Ford Takes Control of Sollers Company

Description of Event\nIn an article published in Reuters, the word was broken that track take Co had taken ascendency its stock partner, the Russian machine ac friendship Sollers beca uptake of the knowing slump in gross sales in Russian gondola auto mart. Due to the sanctions from U.S. And European summation for the Ukraine crisis, the ruble became weak and car sales in Russia lessen sharply. What is more, the huge reduction of planetary oil price arrive a serious gist on Russian frugal system in last year. As a result, the interbreeding-Sollers conjecture fulfill net loss of $107 one thousand thousand dollars. It is estimated that the decline sales in Russian car market cater continue until the bordering few years. crossing ram decided to take control its think in Russian market by the learning of preferred shares, which will walk more capital to advance the venture ahead. After that, traverse-Sollers likewise are responsible for the crossover brand car sales, domestic production and imports in Russian market, but the Ford ram will own the rights to misdirect out Sollers contrive the venture in the future. Actually, except the cooperation with Ford labour, Sollers also has spliff ventures with lots of Japanese car manufactures such as Honda, Isuzu and Toyota.\n\nConnection to planetary Business\nIn this news, it shows a example of the international consolidation strategy, the joint venture. Ford Motor use this strategy to create expansion in Russian car market. A joint venture is a business agreement that the two or more companies decide to form a new entity for economic or strategic purpose. They will control the new company together by manduction the technology and carrying on the twain revenues and expenses. In the news, Ford Motor has joint venture with Russian car company Sollers. As a part of Ford global expansion, joint venture with Russian car company will help Ford to occupy Russian car market share. It ca n provide the unique technology and experts for Sollers to return production and sales. Sollers will use its advantag...