Volkswagen, the German auto manufacturer, plans to complete the sale of three Russian subsidiaries to local investors within the first half of this year, according to the company’s annual report for 2022. The corporate move reflects VW Group’s ongoing strategy to adjust its portfolio in the region while maintaining a footprint in Russia through financing and automotive services that support the broader market network.
All three entities slated for sale operate within the financial services segment: Volkswagen Bank Rus LLC, Volkswagen Group Finants LLC, and Volkswagen Financial Services Rus LLC. Each company plays a distinct role in facilitating consumer financing, retail credit operations, and financial management services for Volkswagen and its regional partners across the Russian market. The proposed divestment aims to streamline the group’s operations while preserving the ability to serve customers through a more localized, investor-driven framework.
Volkswagen’s positioning in Russia has evolved over the years as market conditions and regulatory considerations shaped strategic decisions. The firm’s financial services arm has supported dealership networks, leasing programs, and installment plans, helping buyers access VW, Audi, and Skoda vehicles through flexible financial products. The planned sale underscores a shift toward a more autonomous local financial ecosystem under new ownership while the core automotive brands continue to operate through other regional channels where feasible.
*This material reflects corporate disclosures made in the context of regulatory reporting and market updates regarding Volkswagen’s activities in Russia and does not imply immediate changes to operations beyond the announced transactions.*
In December 2022, an agreement was reached to transfer Porsche Russland LLC and Porsche Center Moscow LLC, along with Porsche Financial Services Russland LLC, to a stand-alone investor. These changes mark VW Group’s broader approach to reorganizing its Russian holdings and assessing long-term participation in the local market through selective ownership arrangements that align with strategic priorities and regional demand patterns.
Volkswagen retains the option to repurchase the sold entities, but the buyback right is restricted to a window of five to ten years from the completion of the sale. This provision reflects typical safeguards in cross-border divestitures that give the original owner strategic leverage while allowing the new owners to establish operating independence within their local market context.
About activities in Russia
Since November 2007, the VW car group has maintained a manufacturing presence in the Kaluga region, where production facilities have contributed to the local economy and helped fulfill demand for Volkswagen-brand vehicles. Beginning in 2011, under a contract assembly agreement with GAZ, VW and Skoda vehicles were assembled at a plant in Nizhny Novgorod, expanding the company’s manufacturing footprint beyond its Kaluga operations. On March 3, 2022, VW announced the suspension of production at its Russian facilities, a decision aligned with broader geopolitical and market developments impacting global operations. The company continues to monitor the situation and assess strategic options for continued involvement in the region through partnerships, financing, and brand presence where permissible and viable under applicable regulations.
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Source: TAS