Image Source: Volkswagen
BEIJING, March 3 (TMTPOST) — Volkswagen announced on Thursday in a statement on Twitter that it will suspend its operation in Russia due to the armed conflict between Russia and Ukraine.
Volkswagen said that it will suspend production at the plants in Kaluga and Nizhny Novgorod. The automaker will also halt car exports to Russia.
The company said it takes its “responsibility for the affected employees in Russia very seriously” and all those affected will receive short-time working benefits, paid by Volkswagen.
Volkswagen established LLC Volkswagen Rus in Russia in 2006, according to open information on its website. The company also started the construction of Kaluga plant that year.
Volkswagen’s Kaluga plant produced around 118,000 cars in 2021. Cars that were produced at the Kaluga plant included Volkswagen Polo, Volkswagen Tiguan and Volkswagen Rapid. The plant also assembled Audi Q7 and Q8 and manufactured fuel engines. Volkswagen currently has 4,800 employees in Russia, around 4000 of which work in the Kaluga plant.
The Nizhny Novgorod plant is owned by GAZ Group and started to assemble Taos and Škoda for Volkswagen in 2011.
Volkswagen has already invested over one billion euros in the Kaluga plant. The company poured in a total of 2.06 billion euros in Russia between 2006 and 2021.
Besides Volkswagen, many other carmakers have also announced to halt sales in Russia, including Nissan, Aston Martin, BMW, Ford Motor, Honda Motor, Jaguar Land Rover, Bentley Motors and Rolls-Royce Motor. Ford Motor, Groupe Renault, Toyota and BMW have also shut down their plants in Russia.
Toyota is the most popular Japanese car brand in Russia and has a production plant in Saint Petersburg. Its plant in Russia produced around 80,000 cars last year. Toyota has announced that its plant in Russia will suspend operation since March 4 because of a component supply shortage. The company also said that it will halt whole car exports to Russia.
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