VW will remain in Russia despite possible sanctions from Europe

Article by Christian A., on March 21, 2014

European Union leaders are meeting this week to discuss possible sanctions against Russia and how to support the Ukrainian economy, as well as how to lessen their reliance on Russian oil and gas in coming years. "I believe we should not scale back our activities (in Russia) because of this," Volkswagen chief executive Martin Winterkorn told Reuters.

VW invested EUR1 billion ($1.4 billion) on its Russian operations from 2006 to 2013. It said in December 2012 that it would invest another EUR840 million in the country until end of 2015. The German carmaker is building a new engine site in Kaluga, Russia, where it is employing over 5,100 people building VW and Skoda models.

The carmaker is aiming to hike sales in Russia by over 60 percent to 500,000 cars, from 303,000 in 2013. "Our sales numbers continue to look good, but we're paying very close attention to what is happening there," Winterkorn said.

He noted that VW’s investments “are still running” and the carmaker we will not stop the new engine plant." VW CFO Hans-Dieter Poetsch said last week that the carmaker was struggling with effects of "extreme" currency volatility that was placing a "clear burden" on its Russian operations. [source: Reuters]

Topics: vw, russia, europe

If you liked the article, share on:

Comments

Recommended

After the highly dynamic Polestar 1 two-door coupe – Polestar’s first ever production car -- was recently unveiled, not a few people’s curiosity was piqued as to how much they...
by - October 21, 2017
The BMW 7 Series is already highly sought after but nonetheless, the German marque is giving it a more exclusive variant for the Russian market, and they are calling it...
by - October 20, 2017
Several automakers including Porsche, Volkswagen, Smart and even Land Rover have all been victimized by cheap Chinese copycats. And if you haven’t seen it yet, the most recent one would...
by - October 20, 2017
The Mercedes-Benz G-Class has been around for quite some time now but to bid it farewell, the company has launched the Mercedes-AMG G65 Final Edition. Mercedes will only build a...
by - October 20, 2017
Have you ever wondered what you can you buy with $9,365 in your pocket? Well, you have quite a lot of options. In fact, you can even purchase a used...
by - October 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries