VW Group ends sales and halts production in Russia Car News

The Volkswagen Group has ended all production and sales in Russia with immediate effect in light of the country’s ongoing invasion of neighboring Ukraine.

In a tweet, the company said it would stop building vehicles at its Kaluga and Nizhny Novgorod plants until further notice, as well as stop all exports to the country.

The Kaluga plant is where local manufacturer GAZ builds the VW Polo, VW Tiguan and Skoda Rapid under license, assembles the Audi Q7 and Audi Q8 from knock-down kits and builds gasoline engines for various models. It employs 4000 people.

The Nizhny Novgorod plant, meanwhile, builds the VW Taos and three Skoda models: the Kodiaq, Karoq and Octavia.

The company added that it “takes very seriously its responsibility towards the affected employees in Russia” and will pay them partial unemployment benefits. A spokesperson told Autocar that no deadline has been imposed on this compensation plan and that the company is keeping it under review.

The move aligns VW Group with several other global manufacturers that have halted Russian operations and joint ventures in recent days, in line with tough trade sanctions imposed on Russia after President Vladimir Putin ordered troops to Ukraine.

Aston Martin, BMW, Ford, General Motors, Honda and Jaguar Land Rover are among the companies that have halted regional sales, while others have been forced to close their global production facilities due to the impact of the conflict in their supply chains.

Yesterday it was confirmed that the VW Group will suspend production at its Zwickau and Dresden facilities until Friday, affecting deliveries of its MEB-based electric vehicles, and will donate 1 million euros (829,000 £) to the refugee charity UNO-Flüchtlingshilfe.

The company spokesperson told Autocar that the company is keeping dealers and customers informed of production line closures and any impact on delivery times.

In a statement released yesterday, the company said: “Volkswagen Group views the Russian attack on Ukraine with great concern and dismay” and hopes for a “swift cessation” of hostilities.

He added: “We are convinced that a lasting solution to the conflict can only take place on the basis of international law. Our hearts go out to everyone there. The safety and integrity of everyone, including our employees, is a top priority. »

The latest development will have a profound impact on Skoda in particular, which sold 90,000 cars in Russia last year, making it the Czech brand’s second largest market worldwide.

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This notice was published: 2022-03-03 11:27:35

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