Volkswagen Plans to Build a New Plant in Russia image

Volkswagen plans to build a new plant in Russia by 2015 to increase its growth in the market.

Volkswagen will invest 250 million euro in the new engine plant which will be located in Kaluga, west of Moscow, next to the existing VW car plant. The initial production will be 150,000 new EA211 engines annually, manufactured specifically for the Russian market. The first two model will be a 1.6 4V MPI petrol unit with 109bhp and 118lb ft of torque. In due course other engines from the EA211 family will be added, such as a turbocharged petrol or a diesel engine.

The company will use the new 1.6-litre engine in models built both at VW’s Kaluga plant and a GAZ contract facility. Currently VW produces in Russia models such as the Skoda Yeti, Octavia and Fabia, and the VW Polo saloon and Tiguan. From all these models around one third are expected to feature the new 1.6 engine by 2015. VW expects sales in this country to reach 500,000 by 2018 from 228,799 units in 2011, part of the company’s plan to become the world’s largest car maker.