“End of an era” for Volkswagen

club Volkswagen It was completely pulled from RussiaEarlier today, the German automaker announced the sale of the Avilon Group from the plant it maintains in Kaluga.

According to a report by Automobilwoche, the Kremlin approved the sale in the past few days and allowed Volkswagen to sell its assets in Russia for €125 million. Shortly after the Russian invasion of Ukraine, Volkswagen suspended production at two of its factories in Russia, while also stopping the export of cars from all of the group’s brands.

The factory in Kaluga, 150 kilometers southwest of Moscow, and employs 4,000 workers, is Volkswagen’s most important asset in Russia and its sale was delayed due to a lawsuit filed by the group’s former production partner Gaz over the termination of the agreement. A Russian court eventually dismissed the suit, paving the way for the German group’s assets in the country to be seized.

The withdrawal of Western automakers from Russia led to a significant drop in car production. 687,000 new cars were sold in 2022, compared to 1.667 million sold in 2021. In addition, several plants were sold to Russian investors, often at a nominal price with the option to buy them back. For example, the French Renault handed over to the Russian state its majority stake in the Lada manufacturer, AvtoVAZ, for one euro.