Volkswagen is not the first company that aims to start production of certain models in Russia, with several other automakers and part suppliers moving their operations into the country. For instance, General Motors and Pirelli signed deals with the local government in order to start the construction of new facilities aimed at enhancing their local activity and to help them address to new segment of buyers.
Similar to Volkswagen, GM saw Russia as a great opportunity in the automotive industry, with the country said to become “Europe's Number One car maker for the American company”, as GM officials explained.
“We are fully committed to our Russia growth strategy,” said Carl-Peter Forster, President of General Motors Europe. “Our St. Petersburg plant will work to the same high standards that have recently resulted in major quality awards for our cars,” said Carl-Peter Forster.
On the other hand, various companies have already shut down their production facilities in Russia, including Renault and Ford which experienced poor sales since the beginning of the crisis. In addition, the Russian government attempted to fight against the cars imports avalanche by introducing a new tax which increased costs on new models by up to 5 percent. This special measure was introduced to encourage carmakers and suppliers to move their operations in the country, Russian officials explained.
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