American auto giant Ford which has been a part of a joint venture with Sollers automotive in Russia has announced to withdraw its operations from the country, resulting in charges of about $450 million to $500 million.

According to an official announcement, Ford’s withdrawal will see Russia’s Sollers assume control of the venture, which at the moment is led by the US automaker. Citing industry sources, Reuters reported that Ford was in talks to close its Russian plants as it aims to review operations in unprofitable regions.

Ford was the first international auto company to open a plant in Russia.

As a result of plant closures in Naberezhnye Chelny and St. Petersburg, Ford announced that it will implement “significant” job cuts. In addition to this, the company has also planned on closing down an engine plant in Elabuga. The closures, as we are told, has been planned in line with its actions in South America and Europe as it works to return profitability in money-losing markets.

In Germany, the company has been negotiating with Volkswagen AG to expand a commercial vehicle and truck alliance, with investors focused on potential partnerships around the development of electric and self-driving vehicles. Those talks, are also said to include working together regionally, including possible plant consolidation.

The American automaker has been aiming to cut cost by reviewing the performance of under-performing markets.

“The new Ford Sollers structure supports Ford’s global redesign strategy to expand our leadership in commercial vehicles and to grow the business in Europe in those market segments that offer better returns on invested capital,” Steven Armstrong, president of Ford of Europe, said in the statement.

Ford was the first international automaker that grounded its flag in the Russian market when it opened a plant in St. Petersburg in 2002. In 2011, the company set a joint venture with Sollers in which each company held a 50 per cent stake.

“The new Ford Sollers structure supports Ford’s global redesign strategy to expand our leadership in commercial vehicles and to grow the business in Europe in those market segments that offer better returns on invested capital,” Steven Armstrong, president of Ford of Europe, said in the statement.