Volkswagen Group Builds Engine Plant in Russia

Volkswagen Group Builds Engine Plant in Russia

As of 2015, the engine plant will supply engines for the vehicle production of the Volkswagen Group Rus in Kaluga as well as the contract production in the GAZ plant in Nizhny Novgorod. Crankcases, cylinder heads with assembly integrated, crankshafts as well as the complete engine assembly are all part of the planned scope of production.

With the construction of the engine plant, Volkswagen is expanding its industrial commitment in Russia. At the same time, the Group is fulfilling the targets agreed with the Russian government at the end of May 2011 in the ancillary agreement to decree 166. This determines that, as of 2016, at least 30 percent of vehicles produced in Russia will be equipped with engines that were manufactured locally.

Investments by the Volkswagen Group in Russia up to now have totalled approximately one billion euro. In order to respond to the strong increase in demand on the Russian automotive market in the future, the Group is planning to invest a further one billion euro in Russia for the development of new market-driven products, the further localisation of production as well as the construction of the new engine plant in Kaluga as was agreed today.

Volkswagen is investing approximately 250 million euro in the 30,000m2 new plant in Kaluga