An Austrian entrepreneur, Siegfried Wolf, has floated a speculative plan for restarting car production in the Russian Federation, estimating the project cost at 60 billion rubles and presenting the idea to Russian authorities. The disclosure appeared in a European outlet, with the report dated early April.
According to the publication, the proposal was submitted to the office of the Russian president in January 2023. The blueprint envisions manufacturing at least 270,000 vehicles annually across two sites: the GAZ facility in Nizhny Novgorod and the Volkswagen plant in Kaluga.
Key elements include reviving certain Skoda models with a refreshed design inspired by classic Russian models, notably the Volga and Pobeda, targeted for the second half of the year. The plan explicitly mentions a revival of the Volga brand and argues that the program would create roughly 12,000 new jobs. Financing would come in the form of a government loan to support expansion and development.
Wolf previously served as chairman of the board at GAZ until 2019 and is currently a member of the supervisory board at Porsche. In March 2023, a German publication noted that a Schaeffler-backed conglomerate controlled by Wolf could be involved in selling a business unit in Russia.
Meanwhile, the broader automotive picture in Russia has seen shifts since the onset of the Ukraine conflict. Volkswagen Group announced the temporary halt of its Russian production facilities and exports. Hyundai has paused assembly lines in St. Petersburg due to supply constraints and other operational considerations.
Movement of Chinese car brands into Russia
In early April, a major business daily reported plans to start producing Chinese Chery vehicles at the former Kaluga plant previously used by Volkswagen.
Additionally, reports indicated that Hyundai’s asset sale in Russia was close to completion. The same sources suggested that the partial sequestration of Volkswagen assets and ongoing disputes between GAZ and Volkswagen had not derailed the sale, with Avilon Automotive cited as a potential buyer.
Volkswagen had announced a forthcoming sale to a “trusted Russian investor” and indicated that Chinese Chery cars could be produced at the site in the future. A local consortium tied to Astana motors could be a candidate to manage Hyundai’s assets in the region.
On the Chinese brand front, BAIC (Beijing Automotive Group) and its regional dealer Major Auto reported that BAIC-branded vehicle production would reach around 30,000 units in 2023. The lineup would include seven BAIC models, with sales expected for the U5 Plus sedan and X35 crossover to begin soon. By year-end, more crossovers, SUVs, and an electric model were anticipated to join the portfolio.
Earlier, Avtotor, a Kaliningrad-based plant, began industrial assembly of BAIC vehicles, with initial introductions including the BAIC X35 crossover and the BAIC U5 Plus sedan scheduled for sales in the second quarter. This evolving landscape highlights the ongoing realignment of foreign and domestic brands within Russia’s automotive sector.
At stake are strategic questions about manufacturing capacity, brand revival, and the role of state-supported financing in reviving traditional models and new projects alike. Industry observers note that the Russian market remains volatile, influenced by geopolitical developments, currency conditions, and the pace of investment in domestic and aligned international partnerships. The coming months are likely to reveal how these plans, assets, and partnerships will unfold against a backdrop of sanctions, supply chain realignments, and evolving consumer demand.