32.1 C
Delhi
Friday, June 2, 2023

Volkswagen completes Russia exit

The German carmaker has sold its business to a local dealer, the company has announced

The world’s second largest car manufacturer, the Volkswagen Group, has completed the sale of its business in Russia to local auto dealer group Avilon, as part of its exit from the country, VW said in a statement on Friday.

The deal has been approved by the Russian government, the company added.

The sale includes the flagship Kaluga production plant southwest of Moscow, which employs around 4,000 people and has the capacity to assemble 225,000 vehicles per year. As part of the deal, VW has also sold its distribution and after-sales business. The warehousing and financial services units will also be transferred to the new owner, the company said.

ADVERTISEMENT

The firm has not given details on the deal, but media outlets have said the carmaker would receive around €125 million ($135 million) from the sale — well below the actual value of VW’s Russian assets.


READ MORE: Chinese firm may take over German car plant in Russia โ€“ media

“All activities are sold so we are not present in Russia anymore,” a VW spokesman told AFP.

Volkswagen, along with other major foreign auto manufacturers, suspended operations in Russia last year after Western countries imposed sanctions on Moscow over the conflict in Ukraine.

ADVERTISEMENT

The German automaker halted production in Kaluga last March due to disruptions in logistics chains due to sanctions. The import of cars and spare parts to Russia also ceased, and the company shut down vehicle assembly at a Nizhny Novgorod plant that belonged to a Russian commercial vehicle manufacturer.

For more stories on economy & finance visit RT’s business section

May 19, 2023 at 07:55PM
RT

ADVERTISEMENT

Support Us

Secured by Paypal

Related Stories

Check out other tags:

Most Popular Articles