21/06/2008 03:26. ST. PETERSBURG, Russia — U.S. automaker Ford Motor Company will start production of the European Mondeo sedan at its Russian plant in September to capitalize on spiraling demand in the local car market.

Next year, the company will boost annual production capacity to 125,000 cars, including 100,000 Focuses and 25,000 Mondeos, Wolfgang Schneider, Ford of Europe vice president, told journalists.

"We will launch Mondeo in September this year. We don't have further plans (for expansion), but if the market increases we want to participate," Schneider said.

Producing the Mondeo locally will reduce time spent on logistics and bring down the retail price by 7 percent, according to car dealer Andrei Pavlovich, CEO of Moscow-based New York Motors.

"There is currently a very high demand for the... // Edmunds.com/Inside Line