Kaluga Plants Continue Production Under Chinese Partner Amid Ownership Shift

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Kaluga’s Automotive Plants Under New Ownership: Production to Resume and Expansion Plans

Production at the Volkswagen and Volvo facilities in Kaluga is set to continue under a new owner with ties to a Chinese manufacturer, according to State Duma deputy Gennady Sklyar, cited by TASS. This marks a pivotal shift for the plants, signaling continued manufacturing activity in the region despite changes in ownership and strategic direction.

Sklyar indicated that the restart of operations at the Volkswagen plant could occur as soon as 2023. He noted that model lines had already been announced and that preparations were well underway, with a Chinese partner stepping in to participate in the industrial arrangement. He also mentioned a potential opportunity involving a Chinese truck producer expressing interest in the Volvo facility, suggesting a broader Chinese involvement in Kaluga’s auto sector.

Earlier this year, Volkswagen Group Russia announced the sale of its Russian assets, including the Kaluga plant. The buyer was identified as Art-Finance LLC, a company connected with the Avilon dealer group. Moving forward, the Volkswagen Group Russia operations in the country would continue under AGR LLC, the Automotive Group brand that operates in Russia. This transition reflects a broader shift in ownership while keeping the manufacturing footprint in Kaluga active.

In related news, a former head of the BelGee factory stated that the enterprise plans to commence production of the first BelGee crossover model, the X50, signaling renewed momentum for BelGee’s manufacturing ambitions alongside Kaluga’s ongoing industrial activity. The timing and scope of BelGee’s production reiterate a regional trend toward diversified automotive manufacturing within the broader Eurasian market, with international partnerships underpinning the strategy. (TASS)

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