Skoda Hints at Final Exit from Russia as Strategic Review Concludes No Reopening Plans
Skoda Auto, the Czech carmaker that operates under the Volkswagen Group umbrella, has concluded that there is no viable path to continue activities in Russia. This stance comes from Klaus Zellmer, the company’s chairman, who stated that the firm does not foresee restarting car production or sales in the Russian market in the foreseeable future.
In outlining a strategic response, Volkswagen Group has evaluated several scenarios. The prevailing preference is to divest all Russian assets, including the Kaluga manufacturing facility, to a third party. The aim is a clean break rather than a gradual return, with a clear focus on exiting operations in Russia in a manner that protects the broader group and its brands. Zellmer emphasized that resumed operations in Russia are not part of the near-term plan for Skoda or the wider VW portfolio.
Skoda’s leadership has noted that the decision to leave Russia has come with a significant financial impact. The company estimates a cumulative loss approaching €700 million since March of the previous year, reflecting expenditures tied to maintaining production capacity and the dealer network during the transition. This figure underscores the heavy costs associated with sustaining presence in a market that is gradually unwinding from the brand’s regional footprint.
Negotiations regarding the sale of Russian assets are described as being in the final stage, signaling a move toward completing the exit. The Russian office of the Volkswagen Group, which oversees Skoda’s interests in the country, was shuttered last summer, and the Kaluga factory is anticipated to find a new owner in the near future. These developments illustrate a broader shift in the company’s regional strategy and its commitment to focusing resources on core markets where long-term growth remains feasible.
Driving opportunities are evolving in the region, with renewed channels for content appearing on platforms such as RuTube, reflecting the changing media landscape and ongoing interest in automotive developments within Russia. [TAS]