Volkswagen leaves Russia completely. The key plant was sold

The Volkswagen Group is selling its most important plant in Russia. We are talking about a plant in Kaluga, which, as reported by the company, will be sold to the Avilon group.

Volkswagen says goodbye to Russia

After earlier steps taken in connection with the war in Ukraine, this decision means the de facto termination of the activities in Russia of the largest automotive group in Europe. The modern plant in Kaluga (about 150 km southwest of Moscow) with 4,000 employees is considered Volkswagen’s most important investment in Russia. The amount of the transfer fee was not disclosed, but Interfax previously reported that the Russian authorities allowed the acquisition of the German company’s assets at a price of up to 125 million euros.

The earlier steps mentioned above took place in March last year, shortly before the Kremlin attack on Ukraine, when Volkswagen suspended production at two Russian plants in Kaluga and Nizhny Novgorod. One of the factories closed last summer.

These steps infuriated the Russians. We recently reported on a lawsuit filed against the Volkswagen Group by Gorkowska Fabryka Samochodów, part of the GAZ group. She demands damages from the concern in the amount of 28.4 billion rubles, that is, about 1.5 billion zlotys. It was not the first pose against the German giant. The GAZ Group has already demanded compensation from Volkswagen for damages in the amount of 15.6 billion rubles, that is, about 0.8 billion zł.

What’s next for Volkswagen plants?

What awaits the Volkswagen factories? The Russians claim that production there will be resumed. Denis Manturov, Minister of Industry and Trade of the Russian Federation, tells Kommersant that the plant in Kaluga will most likely be helped by the reopening of a company from Southeast Asia.