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Volkswagen AG to Get the Moscow Region Registration
The Supervisory Board of Volkswagen AG (VW) has approved the plans to construct an automobile works in Russia to produce Skoda Octavia and VW Pointer there; the project budget is estimated at above $400 million.
VW announced yesterday its Supervisory Board backed up the plans of the Management Board for constructing an automobile works in the Moscow region. VW will independently fulfill the project and own the future works of 115,000-car annual capacity in part and in whole. The target is to make Skoda Octavias and Volkswagen Pointers of the 2nd generation in Russia and sell them there.
The production startup is slated for 2007. VW hasn't disclosed the project budget, while the market experts estimate it to exceed $400 million. According to the sources, VW will apply to the RF Economic Development and Trade Ministry seeking beneficial customs duties for components shipped to Russia for industrial assembly. The authorization will commit VW to arrange the complete cycle production in 30 months once the component assembly has been launched.
The actual place of construction site will be announced in May. The sources say VW will build its works in Stupino. “The probability is 90 percent, though the required documents haven’t been sealed yet.” Apart from Stupino, VW was eyeing sites in the Yaroslavl and Vladimir regions.
www.kommersant.com
All the Article in Russian as of Apr. 21, 2006
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