Russia sets Golf course

Volkswagen has confirmed it will build a new factory in Russia. The plant, to be built in the city of Kaluga, 160km south west of Moscow, will have an annual production capacity of 115,000 vehicles.

VW chairman Dr Bernd Pischetsrieder said: “This decision is of major strategic significance for the [VW] Group. It ensures we will be able to substantially increase our share of the rapidly-growing Russian automotive market over the coming years.”

In total, Volkswagen examined 70 sites before deciding on Kaluga. Initially around 20,000 semi knocked-down (SKD) Volkswagen and Skoda brand models will be assembled at the factory commencing the second half of 2007. Full production is expected to come on stream in the first half of 2009.