Volvo factory
The Swedish Volvo automobile plant in Russia’s Kaluga region, previously under the control of a local investor, is planned to resume production in 2023 and reach full capacity in 2024, according to regional officials. This news came during a live broadcast on VKontakte by the regional head, who confirmed a shift in ownership and ongoing steps to restart operations.
Officials stated that Volvo found a new owner and that the transition is a Russian-led initiative with signed documents. Plans for a restart this year were outlined, with full capacity anticipated next year. A meeting with the new plant leadership is expected next week to discuss concrete production plans and deadlines.
According to the Unified State Register of Legal Entities, Alexey Sannikov assumed the role of general director at the Kaluga Volvo plant on September 7. In late 2021 he served on the board of directors of private lender Expobank, led by entrepreneur Igor Kim.
Volkswagen and Peugeot
The regional president noted a change in ownership for the German automaker Volkswagen’s Kaluga facility this year. Local authorities are pursuing a restart in collaboration with the new owner and Chinese partners, while discussions with the French automaker Peugeot continue as a potential new partner. The aim is for all factories to operate within their defined profiles without altering their core activities.
In February, the regional leader described 2023 as a turning point for resuming car production in the region, though further specifics were not disclosed at that time.
Latest news
During the St. Petersburg International Economic Forum, the Kaluga governor addressed questions about plans to produce first cars at the Volkswagen plant after the change in ownership. He said the goal was to begin working with a new partner within the year, starting with assembly and the rebuilding of production processes necessary to manufacture vehicles. Questions remained about whether new cars would be assembled in Kaluga within the year.
On September 8, the Ministry of Industry and Trade announced that Volvo’s Russian assets had been transferred to a Russian investor. The minister stressed that the transfer agreement did not include a buyback option, and the new owner would restart Kaluga production with a domestic partner involved.
The latest official statements on Peugeot, Opel, and Citroën plants in Kaluga date from April 2022, with Stellantis later stating the initiative faced a halt due to cross-sanctions and logistical challenges. The presence of Volkswagen, Volvo, and PSMA Rus, the joint venture between Stellantis and Mitsubishi, marks Kaluga as a notable center for regional automotive industry activity. No public statements have outlined a definitive future for Stellantis or Mitsubishi plants in Russia as of mid-2023, though local authorities continue to monitor developments.
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