Volkswagen AG Launches Full-Cycle Production At Nizhny Novgorod Under Cooperation With Gaz OAO-Interfax


Thursday, 6 Dec 2012 02:10am EST 

Interfax reported that Volkswagen AG (VW) launched full-cycle production at Gaz OAO (GAZ) automobile works in the Nizhny Novgorod region on December 6, 2012, Mr. Winfried Vahland, Chairman of the Board of Directors at Skoda Auto, told reporters. VW produces the Skoda Yeti in Nizhny Novgorod. It has been assembling the Yeti there by the semi knocked-down method since last November. VW has invested about 1 billion euro in its production facilities in Russia. It is poised to sell around 500,000 vehicles a year in Russia by 2018. VW launched a factory in Russia's Kaluga region in 2009 and had assembled 24 models under the Skoda, Volkswagen and Audi brands by the fall of 2010. It started full-cycle production of four models of two brands, as well as the Volkswagen Touareg and Multivan by the SKD method, in September 2010. It invested 570 million euro in the factory and 774 million euro in the project as a whole. In collaboration with the GAZ Group, VW also assembles vehicles in Nizhny Novgorod. Besides the Skoda Yeti, it will perform full-cycle production of the Skoda Octavia and Volkswagen Jetta at GAZ's facilities, reports have said. VW will turn out more than 100,000 vehicles a year in Nizhny Novgorod. Investments in the project will top 200 million euro, 85 million of which will be invested by the GAZ Group. The agreement between the two companies is valid until 2019. 

Company Quote

189.25
-3.15 -1.64%
15 Apr 2014