After Toyota Motor Corp. (TM), Ford Motor Co. (F) has also decided to join Russian automaker Sollers to manufacture and sell its vehicles in the country. Two of them signed an agreement to form a 50/50 joint venture.

The announcement came soon after Italian automaker Fiat SpA backed out of a partnership to produce up to 500,000 vehicles per year with the same Russian company. Ford Sollers will manufacture a range of Ford passenger cars, light commercial vehicles and engines at plants located in St. Petersburg region and the Republic of Tatarstan.

The venture will also operate a stamping facility that will render auto parts for the production, undertake research and development activities, and import and distribute Ford products, parts and accessories in Russia. The venture is expected to begin operations by the end of 2011. It has applied to the Russian government for approval.

Ford’s move came a week after Toyota announced to enter into a tie up with Sollers and Japanese firm Mitsui & Co. to assemble and sell passenger vehicles at the latter’s plant in Vladivostok, Russia. The tie-up will produce either a sedan or a sports utility vehicle designed by Toyota.

Toyota began producing vehicles in Russia in 2007 at its plant in St. Petersburg. The plant manufactures about 20,000 units of Camry sedan per year. On the other hand, Ford has started manufacturing vehicles in the country from 2002.

Ford, a Zacks #3 Rank (Hold) stock,posted a 24% fall in profit to $1.2 billion or 30 cents per share (before special items) in the fourth quarter of 2010 from $1.58 billion or 43 cents per share (before special items) in the same quarter of 2009. With this, the automaker has missed the Zacks Consensus Estimate by 19 cents per share.

The decline in profit was attributable to lower year-over-year revenues generated by the company’s automotive operations as well as the financial arm. Total revenue during the quarter ebbed 7% to $32.5 billion. However, excluding revenues from Volvo, sales improved by $1.6 billion or 5% from the fourth quarter of 2009.

 
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