VW sells Russian business for 125 million euros

Also a high quality factory

Moscow approves the deal: VW sells Russian business for 125 million euros

A VW employee cleans the logo of a Volkswagen Tiguan at the Volkswagen factory in Kaluga, Russia.

Volkswagen is completely withdrawing from Russia and selling its companies to the Avilon car manufacturer – including the modern factory. Already at the beginning of the Russian war of aggression, VW had completely stopped production in the country.

Moscow. According to media reports in Moscow, the Volkswagen Group has received approval to sell its assets in Russia to the Russian car dealer Avilon for 125 million euros. The Interfax news agency reported on Tuesday in Moscow, citing rounds of negotiations, that the commission The government’s foreign investment control has approved the corresponding application.

The largest VW plant in Russia: 4,000 workers in Kaluga

Avilon will gain full control of Volkswagen Group Rus and its subsidiaries, including several companies that sell Scania trucks. “Volkswagen AG is currently in the process of selling its shares in Volkswagen Group Rus and thus the Kaluga plant with more than 4,000 employees to a prominent Russian investor,” the company said in Wolfsburg, without giving further details.

What are the consequences of the withdrawal of western car manufacturers from Russia?

The withdrawal of Western car manufacturers from Russia has led to a decline in car production in the country. According to the AEB trade association, only 687,000 new cars were sold in 2022 – the year before there were 1.667 million new cars. At the same time, some plants have been taken over by Russian investors; often at a model price with an option to buy. For example, French carmaker Renault handed over most of its shares in the Lada Avtovaz plant to the Russian state for one euro last summer.

RND/dpa

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