Ford to halt Russian plant for month due to crisis

ST PETERSBURG, Russia (Reuters) - U.S. automaker Ford Motor Co. said on Monday it would suspend production at its Russian plant for one month, as the global financial crisis slashes demand for cars.

The company said the assembly line would be stopped from December 24 until January 21 due to New Year holiday and the need to reduce production volumes in December and January.

"The decision to temporarily cut production volumes at Ford's Russian plant has been made by the company due to the overall market environment and the lowering of forecasts for total Russian car sales," Ford said.

Employees will receive two-thirds of their wages during the production halt, the company said.

Ford also said it would delay the launch of production of its Mondeo sedan to March 2009 from the fourth quarter of this year. Ford makes about 70,000 popular Focus models per year at what is its only Russian plant, near the country's second-biggest city of St Petersburg.

Last month, French automaker Renault said it would stop the assembly line at its Moscow plant for two weeks in December as demand weakens.

(Reporting by Denis Pinchuk; Editing by Erica Billingham)