Russia:Ford gains new tax breaks on Russian-made Focus
Ford gains new tax breaks on Russian-made Focus
MOSCOW -- Ford Motor Co. said on Monday its only factory in Russia had won new tax breaks in place of ones lost earlier this year in a row with the authorities over producing car parts locally.
"Cars produced at the company's plant will not require customs clearance from now on," Ford said in a press release issued after signing an agreement with the Economy Ministry.
According to the agreement, cars assembled at the factory in St. Petersburg region will be treated as manufactured locally. However, Ford will still have to pay customs duties on some of the parts it imports.
Under an earlier agreement Ford enjoyed tax breaks worth around $700 per car provided 40 percent of the parts were manufactured in Russia.
But in June the authorities said the carmaker did not reach the target and withdrew the breaks causing a brief halt to production.
Ford said the company now exceeded the 40 percent target for locally-produced parts.
Since June 15 Ford has paid $5,222 (140,000 roubles) in customs duties per car. A basic Ford Focus costs around $11,700 in Russia, making it one of the most affordable and competitive cars on the market.
Ford aims to produce around 60,000 Ford Focus cars this year to meet a growing demand for the car.
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.
My next Ford.....