Volkswagen examines exporting Russia-built cars image

The German carmaker Volkswagen might decide to export cars produced in Russia to other countries in an attempt to compensate the plunging sales that are happening in the struggling auto market there.

A Volkswagen spokesman said that while no decision has been made yet, “There are studies within the Volkswagen Group RUS as to whether to export cars from Kaluga.”

Sales of VW’s cars in Russia for the first seven months went down a massive 44% to 42, 525 units. In the background, according to data from the Moscow-based Association of European Business in Russia, the auto market there has declined 35% to 913,181 units.

Volkswagen has already cut back on its production at its Kaluga plant, in the south of Moscow, where it manufactures its VW Polo subcompact, its Tiguan SUV and the Skoda Rapid compact. Similar to the situation in Russia, automakers are taking into account shipping cars built in China to North America, where demands have increased in the past few months.

Merkel and Putin inform themselves about dual vocational training at Volkswagen in Russia
Merkel and Putin inform themselves about dual vocational training at
Volkswagen in Russia

VW’s group sales went down 3.7 in July, mainly because of a weak auto market in China, Russia and Brazil and a decrease in the carmaker units’ volume. Car sales of the group, which includes Audi, Porsche, Bentley, Volkswagen, Skoda and Seat, saw a drop from 822,200 units sold in July last year, to 792,100 vehicles this year.

The reason for a decline in sales overall for the Group is that the markets in China, Russia and Brazil have not improved lately, putting a lot of pressure on global carmakers in terms of sales and stock shares.

 

By Gabriela Florea