Industry observers note that AFK Sistema is exploring the potential purchase of the Volkswagen factory located in Kaluga. A Kazakh firm, Allur, which participates in automotive production and has Chinese investors tied to Volkswagen’s China program, is reported to be involved in the discussions as well. The details are still under negotiation, and representatives from AFC and Allure have not issued formal comments. Volkswagen Group Rus has acknowledged that asset sales are on the table but has not announced a concrete decision.
According to a source familiar with the matter, several routes for collaboration between the Kazakh and Russian parties are being considered. The conversations appear to center on maintaining production of current models at the Kaluga site rather than initiating new product lines. The Kaluga plant, which has not operated since March 2022, previously produced the Volkswagen Tiguan and Polo, as well as the Skoda Rapid. Its annual production capacity stands at about 225,000 vehicles, underscoring the plant’s significance in the regional manufacturing landscape.
Kaluga’s factory footprint once served as a key link in Volkswagen’s Eastern European and global supply chain. The decision to wind down production in 2022 reflected broader shifts in the company’s corporate strategy and market conditions. With discussions about potential asset transfers, stakeholders in the automotive sector are watching how ownership changes might affect supply commitments, employment, and regional industrial policy.
Analysts emphasize that any forthcoming agreement would need to address ongoing maintenance of equipment, workforce transition, and the alignment of production capacities with existing model lines. If the deal proceeds, the focus would likely be on leveraging established facilities and skilled labor to sustain production of proven vehicles while evaluating opportunities for incremental improvements and efficiency gains in the plant operations.
Industry voices also consider the regulatory environment and cross-border trade implications in Canada and the United States, given the plant’s geographic and economic ties to global automakers. Stakeholders are weighing how a renewed production program at Kaluga could influence regional supply chains, logistics, and service networks, alongside potential investments in modernization and digital manufacturing technologies to improve throughput and quality control.
In parallel, Volkswagen Group Rus has reiterated that the company continues to assess its asset portfolio in response to evolving market dynamics. Any eventual decision will likely be announced after careful due diligence and strategic alignment with broader corporate objectives, including product strategy, regional demand, and long-term profitability. The automotive market in North America and North Hemisphere regions remains a critical consideration as the parties evaluate options for leveraging Kaluga’s capacity and infrastructure to support a stable, sustainable manufacturing footprint.
Observers note that the Kaluga site has a storied history in the region’s automotive development, and its future role will be shaped by a combination of corporate strategy, partner interests, and the region’s industrial ecosystem. The outcome could set a precedent for international partnerships in vehicle production and for managing legacy plants within the evolving landscape of automotive manufacturing.