A joint venture between US carmaker Ford and Russian firm Sollers is cutting 700 staff at its plant near St Petersburg; that is 12 percent of the workforce.<br /><br />The cutbacks come as sales have faltered in Russia with a slowdown in economic growth. <br /><br />Sales fell five percent last year and industry groups are forecasting another weak year because of the fragile economy. <br /><br />The weaker rouble is another factor Ford said.<br /><br />It is down seven percent against the dollar this year as investors fear the effects of US and EU sanctions following Moscow’s annexation of Crimea. <br /><br />The falling rouble reduces Russian consumers’ purchasing power and makes it more expensive for car manufacturers to buy parts from abroad.<br /><br />Ford Sollers employs around 5,500 people around St Petersburg and in Tatarstan. <br /><br />They make the Ford Kuga, Ford Explorer, Ford S-MAX, Ford Galaxy, Ford Transit and Tourneo Custom, as well as the Focus and Mondeo models in Russia.
