Volkswagen to liquidate production in Russia: reports

Volkswagen will announce the liquidation of its production site in Russia this week, according to Russian media reports.

“Today or tomorrow, the Volkswagen concern will announce the liquidation of the site in Nizhny Novgorod,” Gazeta.Ru reported on Wednesday, quoting two informed sources, one of them in the Russian office of the German concern. “The official reason is the reduction in the supply of auto components to Russia, as well as the blocking of logistics supplies, but this is such a wording to avoid potential criminal cases due to the support of anti-Russian sanctions.”

Neither Volkswagen nor Volkswagen Rus responded to Kallanish request for comment before deadline on Wednesday.

Earlier, Russian media reported that Volkswagen management offered workers of the plant in Nizhny Novgorod to resign of their own free will.

The Nizhny Novgorod site produced Skoda Kodiaq, Karoq, Octavia and Volkswagen Taos. The design capacity of the plant is 132,000 vehicles per year. In February 2021, the 400,000th car was assembled on the assembly line in Nizhny Novgorod using the full cycle method. 

The Volkswagen concern ceased its activities in Russia in April after the Russian invasion of Ukraine and sanctions against Moscow (see Kallanish passim).

More than 20 foreign carmakers have suspended production or left the Russian market since Russian forces invaded Ukraine on 24 February.

Carmakers in Russia decreased output significantly in January-May to 268,000 passenger cars, down by 56.4% on-year. In May alone, only 4,000 units were produced, down 96.7% on-year.

Svetoslav Abrossimov Bulgaria