On this day: 05-31-1929
Ford signs agreement with Soviet Union
Ford Motor Company signs a landmark agreement to produce cars in the Soviet Union on this day in 1929. The Soviet Union, which in 1928 had only 20,000 cars and a single truck factory, was eager to join the ranks of automotive production, and Ford, with its focus on engineering and manufacturing methods, was a natural choice to help. The always independent-minded Henry Ford was strongly in favor of his free-market company doing business with Communist countries. Signed in Dearborn, Michigan, on May 31, 1929, the contract stipulated that Ford would oversee construction of a production plant at Nizhni Novgorod, located on the banks of the Volga River, to manufacture Model A cars. An assembly plant would also start operating immediately within Moscow city limits. In return, the USSR agreed to buy 72,000 unassembled Ford cars and trucks and all spare parts to be required over the following nine years, a total of some $30 million worth of Ford products.