Locally Assembled VW LCVs Hit the Russian Market

In spite of difficult market conditions in Russia, VW began commercializing the domestically-built Transporter, Caravelle, Multivan and Caddy models. This is good news for everyone, but especially the community near the Kaluga plant where the LCVs are being assembled.

The Russian auto market is facing one of the worst times this year, with production levels reduced or even halted in most automotive factories. Despite previous years positive forecasts that presented the Russian market as the place to be, with demand levels exceeding Western European ones, Russia is facing one of toughest economic crisis transitions in the world.

Because of massive job cuts and payment reductions Russians remain reticent about buying new cars, so a rebound of the auto market isn't expected very soon. Because of these conditions, German automaker Volkswagen decided to launch on the Russian car market an entire range of locally assembled light commercial vehicles (LCVs).

The Kaluga plant started operating in November 2007 and according to just-auto.com, it is also responsible for assembling Skoda brand vehicles too. The plant's production capacity reached 60,000 vehicles in 2008. This year between January and July, the Kaluga facility rolled out some 25,100 Volkswagen vehicles.

“Analysts note that OEMs are looking to make their Russia facilities work harder for them in the face of a sharply declining market - in order to support capacity utilisation rates and due to the weak Russian currency which has made imported BU vehicles more expensive”, said just-auto.com.