Volkswagen starts working on its plant in Russia

Volkswagen starts working on its plant in Russia

German automotive giant Volkswagen has started working on their new plant in the Russian market. Russia’s Economy Minister German Gref, Kaluga region governor Anatoly Artamonov and the management of German automaker Volkswagen were present at the laying down of the cornerstone ceremony.

This plant is expected to reach production volumes of 115,000 cars a year by 2009. VW would be investing around $340 million at the first stage. Another $130 million would be spent in the second stage.

Gref spoke on this occasion: “As of today, all decisions have been made, and we can call Volkswagen a Russian car as well.”

He added that in the next 4-5 years, VW cars in Russia will be sold at least 20 percent cheaper than now. Russia is increasingly becoming an important market for the automakers around the world.