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VW Adding Engine Factory to Kaluga Facility, in Russia

Volkswagen’s Kaluga plant, just west of Moscow, currently manufacturers cars like the Skoda Yeti, Octavia and Fabia (and the Rapid), as well as the VW Tiguan and Polo. However, as of 2015, the German giant plans to add a €250-million facility to their existing plant.
VW Kaluga 1 photo
Photo: owc.de
It is slated to produce an all-new 1.6-liter engine with 109 hp and 160 Nm (118 lb-ft) which the group says will find its way under the bonnet of a third of all cars produced at Kaluga, by 2015. They plan to make some 150,000 EA211 engines every year, and aside from this naturally-aspirated variant, a turbocharged version, as well as a diesel are very likely to be made there as well.

According to Marcus Osegowitsch, the General Director of the VW Group Russia, said that by building these engines in the country, import duty and other taxes will become irrelevant, thus allowing the manufacturer to reduce the cost of their products.
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