Kaluga Plant Status: VW Decides on Future Afterasset Sale Talks

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The fate of Volkswagen’s Kaluga production site remains unresolved as of now, with no official decision disclosed. This update comes from TASS, which cited a spokesperson representing the automaker in confirming that deliberations are ongoing and that a final course of action has not yet been chosen.

According to the same source, Volkswagen has evaluated multiple pathways for continuing operations in Russia. The leading option involves transferring ownership by selling the assets of Volkswagen Group RUS, including the Kaluga plant, to a third party. The spokesperson emphasized that while this scenario is favored, no binding decision has been reached yet, leaving room for alternative arrangements to be considered before any formal announcement.

Earlier reports circulated on the Telegram channel Russian car noted that potential buyers had emerged as frontrunners in the process. Avilon, an experienced auto trader, alongside the Russian investment company AFK Sistema, were identified as the principal bidders for the Kaluga facility. Historically, the site has produced models such as the VW Tiguan and Polo, alongside Skoda Rapid, underscoring its strategic importance to the group’s regional manufacturing footprint. The plant has remained idle since March 2022, reflecting broader shifts in the company’s regional production strategy and the broader economic environment affecting operations in the country.

In related commentary, Oliver Blume, the chief executive of Volkswagen, indicated in remarks shared with a German radio broadcaster that a decision regarding the Kaluga plant’s future would be disclosed within weeks. The timing of this disclosure is likely to influence both European and North American supply chain expectations, as well as the plans of regional distributors and dealers who monitor the status of the brand’s manufacturing capacity in Russia. The comment from Blume aligns with the broader pattern of corporate reassessment of assets in markets experiencing regulatory and geopolitical changes, signaling that stakeholders across continents will be watching closely for any formal update.

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