Volkswagen will build an engine plant in Russia, with the German carmaker to invest about 250 million euros in the new facility.
Dr. Martin Winterkorn, CEO of Volkswagen AG, and Anatoly Artamonov, Governor of the Kaluga province, have signed contracts today in Moscow regarding the construction of an engine plant in Kaluga, Russia. The new plant will build the modern engine generation EA211 starting in 2015, with the maximum annual output set at 150,000 engines. The engine plant will be located directly next to the VW vehicle plant in Kaluga.
“Russia is the primary strategic growth market in Europe for the Volkswagen Group. By 2018 we intend to sell a half a million vehicles here annually. Our new engine plant shows: The Volkswagen Group remains a powerful engine for the Russian automotive industry and the Russian economy in general”, said Dr Martin Winterkorn, at the signing of the contract.
The engine that will be made in Kaluga in the future is a 1.6 litre petrol engine from the EA 211 family, representing the most up to date engine technology in the Volkswagen Group. Volkswagen is investing approximately 250 million euro in the 30,000m2 new plant in Kaluga. As of 2015, the engine plant will supply engines for the vehicle production of the Volkswagen Group Rus in Kaluga as well as the contract production in the GAZ plant in Nizhny Novgorod.