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Can the Germans leave the Russians without the Volkswagen Polo and Skoda Rapid?

  • May 21, 2022
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This week, information began to emerge from various sources that Volkswagen’s Russian office will begin proceedings to leave Russia before the end of spring. The AvtoVzglyad portal checked

Can the Germans leave the Russians without the Volkswagen Polo and Skoda Rapid?
This week, information began to emerge from various sources that Volkswagen’s Russian office will begin proceedings to leave Russia before the end of spring. The AvtoVzglyad portal checked whether the Russian market would indeed suffer an “irreparable loss” soon.

To begin with, let’s sketch the existing image. Volkswagen Group Rus owns its own factory in Kaluga, which can produce 225,000 vehicles annually. There they made related liftbacks Volkswagen Polo and Skoda Rapid, and nearby they made 1.6-liter engines for them (and not only).

In Nizhny Novgorod, in the facilities of the GAZ Group, other cars were assembled: the Skoda Octavia Liftback, plus the Skoda Kodiaq, Skoda Karoq and Volkswagen Taos crossovers. This is a contract assembly, that is, equipment and workers were supplied by the Gorky Automobile Plant and received a certain payment from Volkswagen for each assembled car.

In recent years, the forces of both sites have been able to produce about 200-220 thousand cars. This spring, however, the conveyor belts stopped immediately. The official reason was by no means Western sanctions, but the infamous ‘supply chain rupture’. The downtime for workers has so far been extended until the end of May, but it is not clear when production will actually resume.

And will it resume? We repeat: there are many rumors and innuendo on the Internet. However, the personnel director of Volkswagen Group Rus firmly told the workers that the company had no plans to leave Russia. The fact that such statements were indeed made to the workers’ collective of the Kaluga plant was confirmed on the AvtoVzglyad portal by a representative of the Unity union.

The truth, of course, always lies in the middle. The Renault group showed a very good example of how to “leave but stay”. And if Volkswagen really wants to back anti-Russian sanctions, then there is no better option to transfer assets to the domestic side for a nominal ruble for a while. And in return get the right to repurchase.

The Germans, of course, will not want to give the Kaluga factory “for good”. According to various estimates, about a billion euros was invested in Russia! Therefore, having “discarded” the conveyor to the nominal owner, it will be possible to immediately launch it according to the “Chinese scheme”, that is, to make the same Polos and Rapids, but under a certain synthetic brand – in China , the name Jetta became such a brand.

But the prospects for the Nizhny Novgorod line are, to say the least, vague. On the one hand, there is nowhere else to make Octavia and Karoki … But, as the AvtoVzglyad portal has already said, everything will be decided on May 25, when the US Treasury Department will announce whether sanctions will be imposed against the GAZ Group or other delay follows.

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photo of the manufacturer.
photo of the manufacturer.

To begin with, let’s sketch the existing image. Volkswagen Group Rus owns its own factory in Kaluga, which can produce 225,000 vehicles annually. There they made related liftbacks Volkswagen Polo and Skoda Rapid, and nearby they made 1.6-liter engines for them (and not only).

In Nizhny Novgorod, in the facilities of the GAZ Group, other cars were assembled: the Skoda Octavia Liftback, plus the Skoda Kodiaq, Skoda Karoq and Volkswagen Taos crossovers. This is a contract assembly, that is, equipment and workers were supplied by the Gorky Automobile Plant and received a certain payment from Volkswagen for each assembled car.

In recent years, the forces of both sites have been able to produce about 200-220 thousand cars. This spring, however, the conveyor belts stopped immediately. The official reason was by no means Western sanctions, but the infamous ‘supply chain rupture’. The downtime for workers has so far been extended until the end of May, but it is not clear when production will actually resume.

And will it resume? We repeat: there are many rumors and innuendo on the Internet. However, the personnel director of Volkswagen Group Rus firmly told the workers that the company had no plans to leave Russia. The fact that such statements were indeed made to the workers’ collective of the Kaluga plant was confirmed on the AvtoVzglyad portal by a representative of the Unity union.

The truth, of course, always lies in the middle. The Renault group showed a very good example of how to “leave but stay”. And if Volkswagen really wants to back anti-Russian sanctions, then there is no better option to transfer assets to the domestic side for a nominal ruble for a while. And in return get the right to repurchase.

The Germans, of course, will not want to give the Kaluga factory “for good”. According to various estimates, about a billion euros was invested in Russia! Therefore, having “discarded” the conveyor to the nominal owner, it will be possible to immediately launch it according to the “Chinese scheme”, that is, to make the same Polos and Rapids, but under a certain synthetic brand – in China , the name Jetta became such a brand.

But the prospects for the Nizhny Novgorod line are, to say the least, vague. On the one hand, there is nowhere else to make Octavia and Karoki … But, as the AvtoVzglyad portal has already said, everything will be decided on May 25, when the US Treasury Department will announce whether sanctions will be imposed against the GAZ Group or other delay follows.

SUBSCRIBE FOR EXCLUSIVE CONTENT

PORTAL “AVTOVGLYAD” IN TELEGRAM

Source: Avto Vzglyad

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