Volkswagen Begins Full Production in Russia

Volkswagen Group today announced that it will begin full production at the Russian plant in Kaluga, with the facility expected to build around 150,000 vehicles per year. The plant has already rolled off the assembly lines 100,000 units belonging to Volkswagen and Skoda, as part of the first stage of the project. Production commenced in November 2007, with all models addressed to the Russian market.

"Russia is set to become one of the world’s leading automotive nations and the Volkswagen Group will be involved in shaping this successful future as a reliable partner. Today, we have well and truly become a Russian automaker," Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen AG said yesterday.

"Volkswagen is backing sustainable growth on the important Russian auto market. Here, the Group with its strong brands and convincing technology now ranks among the top 3 manufacturer groups in terms of vehicle deliveries. Our highly flexible plant in Kaluga has been a decisive factor in this success. My special thanks go to the Volkswagen Group Rus team," Prof. Jochem Heizmann, Member of the Board of Management of Volkswagen AG with responsibility for Group Production, said.

As part of the production boost, the factory will also add new jobs, Volkswagen said in a release. The facility currently employs 1,800 people but the company expects to increase its workforce to 3,000 employees by 2010.

Since November 2007 when the Kaluga plant officially started operations, Volkswagen more than doubled its market share in Russia to 6.6 percent (from 3.2 percent at that time). The German group invested a total of 570 million euro for the construction of the Kaluga facility.