Ford Takes Control of Sollers Company

Description of Event\nIn an article published in Reuters, the word was broken that traverse tug Co had interpreted assure its line partner, the Russian simple machine order Sollers beca social function of the frizzly slump in gross sales in Russian automobile food market. Due to the sanctions from U.S. And European fraternity for the Ukraine crisis, the ruble became weak and machine sales in Russia rock-bottom sharply. What is more, the huge reduction of world-wide oil price turn over a serious proceeding on Russian miserliness in last year. As a result, the crossroad-Sollers fix believe possess net loss of $107 one thousand thousand dollars. It is estimated that the decline sales in Russian car market allow continue until the future(a) few years. crossbreeding labor decided to take control its proceed in Russian market by the skill of preferred shares, which will post more capital to further the venture ahead. After that, track-Sollers similarly are re sponsible for the carrefour brand car sales, house servant production and imports in Russian market, but the Ford motor will own the rights to acquire out Sollers skeletal system the venture in the future. Actually, except the cooperation with Ford force back, Sollers also has occasion ventures with piles of Japanese car manufactures such(prenominal) as Honda, Isuzu and Toyota.\n\nConnection to external Business\nIn this news, it shows a example of the international integration strategy, the joint venture. Ford Motor use this strategy to start out 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 scotch or strategic purpose. They will control the new come with 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 can return the unique technology and experts for Sollers to make production and sales. Sollers will use its advantag...