Kaluga Region Sees Restart of Idle Auto Plants and Expansion Plans
In a briefing, the Kaluga region governor Vladislav Shapsha confirmed that several idle vehicle factories, including Volkswagen, PSMA Rus (the joint venture of Peugeot Citroen and Mitsubishi), and Volvo, are returning to operation. The statements were reported by TASS and reflect a broader push to restart automotive production in the area after a pause in 2023.
Shapsha outlined a clear development trajectory for the involved brands. The former Volvo team is resuming work with the initial batches of cars set to roll off the line within the year. He emphasized that the production cycle would be fully utilized, with the entire manufacturing process organized to achieve substantial capacity. The aim is to stabilize output and rebuild the supply chain around the Kaluga facilities, which have long been central to Russia’s automotive ambitions.
Regarding the Volkswagen plant, the governor noted that discussions about workload and production scheduling are ongoing. The first sets of vehicle kits are anticipated to arrive by the end of December, after which the assembly line would commence operations. Shapsha did not specify the exact model line or brand mix that would be produced at the site, leaving room for strategic decisions based on supply, demand, and market conditions in the coming months.
In a related development, an agreement was reached for the PSMA Russian plant, a collaboration between Stellantis and Mitsubishi, to resume mass car production. Shapsha reported that the site has seen the development of new technologies and the completion of trial production runs, signaling a readiness to scale up output once market conditions permit. This move aligns with regional efforts to diversify manufacturing capabilities and strengthen the domestic automotive ecosystem through a coordinated industrial policy.
These announcements follow earlier industry updates, including the presentation of new generations of liftbacks and station wagons by Skoda, indicators of a broader trend toward modernized model lines and renewed supplier engagement in the region. The convergence of brand activity in Kaluga underscores the area’s ongoing importance as a manufacturing hub and its role in supporting local employment and regional economic stability.
Industry observers note that restarting these plants involves complex coordination across components supply, logistics, and workforce training. Government officials indicate that state support and investment in production infrastructure are critical to sustaining high utilization rates and ensuring that the facilities can respond quickly to shifts in global demand. The reactivation of the plants is also seen as a signal of resilience in Russia’s automotive sector, with potential implications for regional export capabilities and domestic market supply for popular vehicle segments.
Experts emphasize that the operational restart will hinge on achieving a balanced mix of models, efficient assembly processes, and robust aftersales networks. As plants return to life, the focus will be on maintaining quality control, meeting sustainability standards, and integrating new technologies that enhance efficiency and reduce emissions. The Kaluga region continues to position itself as a strategic site for industrial growth, leveraging its established automotive footprint to attract investment, talent, and advanced manufacturing capabilities.
With the industry watching closely, authorities remain committed to monitoring production volumes and resolving any bottlenecks that could slow the recovery. The goal is a steady ramp-up that supports stable employment and contributes to regional GDP while aligning with broader national priorities in the automotive sector. The unfolding developments in Kaluga reflect a measured, long-term effort to restore confidence among manufacturers, suppliers, and the market at large, even as external market dynamics continue to evolve.