Vw planning to produce more than 100,000 cars in at GAZ plant in Russia

Article by Christian Andrei, on February 25, 2011

At Russian group GAZ's plant, Volkswagen aims to produce over 100,000 Volkswagen and Skoda cars annually. Volkswagen has submitted a memorandum of intent to the Russian government to confirm its commitment to new manufacturing criteria – as part of a requirement to qualify for a raft of incentives including lower custom tariffs on parts.

Volkswagen's Russia chief Marcus Osegowitsch said in a statement on Thursday said that the group is “highly interested” in further developing its operations for the Russian market.

He described GAZ Group to be a “strong Russian partner familiar with western production and management standards." Western carmakers want to have local Russian partners in a bid to offset a slowdown in developed market sales with emerging market growth.

In turn, the Russian government has been trying to attract auto industry leaders with financial incentives for using local manufacturing facilities and labor.

Foreign carmakers have until Feb. 28 to submit a memorandum of intent to the government stating their plans for Russian manufacturing. Ford Motor Co. and General Motors Co. are included in the companies finalizing plans. [via autonews - sub. required]

Topics: vw

If you liked the article, share on:


Login or Create new account to add a comment!


It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016