Under the agreement, Volkswagen Group Rus intends to modernize and expand the capacity of the internal combustion engine plant in the Kaluga Region to produce the second 1.4 TSI engine in 2024. The project investments will exceed RUB 6 billion, with 80 jobs will be created.
The Ministry of Industry and Trade of the Russian Federation is discussing the possibility of signing three special investment contracts (SPICs) for the production of automotive components with Volkswagen (VW), Faurecia and ZF, a Ministry representative told Vedomosti. He did not disclose details. According to him, “the development and approval of key parameters of investment component projects is ongoing”. “Within the SPIC framework, investors can apply for tax benefits at the federal and regional levels, as well as have the opportunity to create an individual schedule for localization of technological operations,” the Ministry representative added.
Volkswagen localizes the production of a turbo engine (1.4 liters) in Russia, and will also increase the production of a 1.6 liter engine manufactured in Kaluga, if it agrees with the Ministry of Industry and Trade on the terms of the special investment contract, the director general of the Russian division of Markus Ozegovich said. His words are quoted by RIA Novosti.
A special investment contract (SPIC) may be concluded with Volkswagen within the next two months. This was reported to journalists by the head of the Ministry of Industry and Trade Denis Manturov on the sidelines of the Business Russia forum.
Volkswagen group is ready to invest in projects in Russia another 500 million euros in the next five years, told CEO of Volkswagen group Rus Marcus Ozegovich to Vedomosti. The concern has already invested 1.85 billion euros.
After 2020, Volkswagen will start production in Russia of a new compact car, which the company called Volks-SUV - the “folk crossover”. The car will join the model line and take the stage followed by VW Tiguan, which is popular in Russia. It is reported by the Automotive News, the authoritative American periodical citing the brand CEO Herbert Diess.
Volkswagen Group Rus intends to arrange production of parts for six German car brands in the South Ural area. This became known today after the talks between the Governor of the Chelyabinsk Region Boris Dubrovsky and the company's CEO Marcus Osegowitsch at the St. Petersburg International Economic Forum.
The Volkswagen’s CEO in Russia said that the car concern expects to obtain a special investment contract for the production of Audi. Earlier, the plant stopped production of A6 and A8 sedans in Russia due to a low demand for them.
The Volkswagen automotive concern expects to resume production of Audi cars in Russia and conclude a special investment contract for this purpose. Marcus Ozegovich, Head of the Russian subdivision – the Volkswagen Group Rus company – told about it in his interview with the Vedomosti newspaper.
Volkswagen Group Rus expanded its production facilities in Kaluga to produce its second generation Tiguan car. A new bodyshop 12,000 sq. m in area was constructed and equipped. The total volume of Volkswagen Group’s investments in production of the new Tiguan will amount to €180 mln.
Production of a new large Skoda Kodiaq crossover may start in 2017, a source familiar with the management of the Volkswagen Group and top managers of two dealer companies of the Group told Vedomosti. The new car will be manufactured in Nizhny Novgorod at the GAZ facilities, two of them confirmed. Currently Skoda Yeti, Volkswagen Jetta and Skoda Octavia are produced here in the full cycle mode.
Volkswagen of Germany is launching assembly of its Polo GT sport cars at its Kaluga Plant, as correspondents of TASS were informed by the Company's PR function.
According to the TASS' source, July saw test assembly of the new Tiguan motorcar as well.
Russian branch of German car manufacturer Volkswagen of "Volkswagen Group Rus" LLC began to produce new commercial cars of T6 series, as the press-office of the enterprise informs.
Three car modifications will be produced, namely, Transporter, Caravelle, and Multivan.
At the plant in Kaluga the SKD assembly of imported parts is planned. Localization opportunities are not revealed by the press-office of the Company yet.
“Our vehicles of domestic assembly shall be of interest for the state companies, first of all, defense and law enforcement agencies, state corporations”, Mikhail Semenikhin, the Head of “Volkswagen, Commercial Cars” brand in Russia supposes.
Nowadays, Volkswagen produces Volkswagen Polo Sedan, Volkswagen Tiguan, and Skoda Rapid on a full cycle basis. The SKD assembly method is used for Volkswagen Touareg, Volkswagen Multivan, Audi A6, and Audi A8 production. At “GAZ” group facilities Volkswagen Jetta, Skoda Yeti, and Skoda Octavia are produced on a full cycle basis.
Volkswagen may become the first foreign automaker to build a chassis plant in Russia. The company is planning to invest 100-150 mln Euro into the project, Izvestiya cite a source in the Russian government.
“The new project that Volkswagen is undertaking now is the production of MQB platform that they want to launch here [at Volkswagen’s Russian plant in Kaluga]. That is a single modular platform that enables unification of production, on the one hand, and provides flexible solutions to complex technical issues, on the other hand,” the source explained.
Also, Volkswagen launched batch production of engines at Kaluga plant on 5 September. The brand’s media office reports that the enterprise started assembling 1.6L gasoline engines. The engine block will be released in two versions, with 90 and 110 horsepower. These engines will be installed on new Volkswagen Polo and Skoda Rapid cars.
“Essentially, these engines will be like the ones they use in Europe. However, you can make changes to any design. For example, you can build your engines as TSI, or you can make them MPI, leaving the base engine the same, but simpler and less eco-friendly. In Kaluga, we will start with MPI engines of the last generation. It will be a 1.6L engine, and we will use it with the same models that currently use the 1.6L old-generation engine, such as Polo, Jetta, Octavia and others,” CEO of Volkswagen Group Rus Markus Ozegovic told earlier in his interview with Autonews.ru.
Volkswagen has opened a car engine manufacturing plant at the Grabtsevo Industrial Park in Kaluga at an opening ceremony attended by Prime Minister of the Russian Federation Dmitry Medvedev.
The company has invested around 250 million euros in the 32,000-square-metre production facility, the engineering infrastructure for which was provided entirely by the region. Dmitry Medvedev also took part in the laying of the first brick of the factory back in 2013.
“We are talking serious, large-scale investments here. And it will be the first time that a company is localizing engine manufacturing in Russia,” Medvedev said at the opening ceremony. “What they have managed to do in such a short space of time is more than impressive: setting up a state-of-the-art production facilities, creating high-performance jobs and offering very attractive salaries.”
General Director of Volkswagen Group Rus Marcus Ozegovich pointed out that the new factory would create 400 new jobs and manufacture 150 engines per year.
“Production will be localised entirely in Russia – the engine will be 100% Russian,” Ozegovich. Cylinder barrels and integral cylinder heads will be brought to Kaluga from Nemak’s factory in Ulyanovsk. The aluminium will also be produced in Russia, and the production process will use locally sourced sand. The Fujikura company will supply the wiring for the motors.
According to Ozegovich, the Kaluga engines will meet the highest standards.
Test production of 81kW (110 horsepower) 1.6 MPI EA 211 series petrol engines began in February of this year. The engines, according to Ozegovich, are ten kilograms lighter than those currently being produced at the Kaluga factory and differ in other aspects.
The engines will be produced for the Skoda Rapid and Volkswagen Polo models, which are assembled in Kaluga, as well as for the Volkswagen Jetta, Skoda Octavia and Skoda Yeti, which are manufactured in Nizhny Novgorod.
According to Volkswagen Group Rus, 30% of the cars it produces in Russia will be fitted with locally made engines.
German auto giant Volkswagen plans to invest €1.2bn in developing new models and further steps to localize production in Russia by 2018, news materials drafted ahead of Prime Minister Dmitry Medvedev’s visit to Kaluga indicate.
“The group expects to additionally invest a total of €1.2bn into the development of new models meeting the requirements of the Russian market, and further localization of its projection in the country,” the news release says.
At this point, Volkswagen has already invested €1.3bn in Russian projects.
The news release specifies that the company’s Russian sales roughly totaled 260,000 cars in 2014, with 185,000 cars produced in Russia.
Carmaker Volkswagen, which was recently recognised as the most successful enterprise on the global automotive market, will launch engine production in the Kaluga Region in September 2015.
This announcement was made during a meeting between Russian Minister of Industry and Trade Denis Manturov and German Ambassador to Russia Rüdiger von Fritsch.
Manturov stressed that Russia intends to “consistently and systematically create full-cycle enterprises in all strategic and high-tech industrial sectors and expand the geography of foreign suppliers.”
Construction on the engine plant in the Grabtsevo industrial park began back in December 2012 and pre-batch production of engines for a number of Volkswagen and Škoda models assembled at the Kaluga automotive cluster began in February 2015. According to the plan, the plant will manufacture 150,000 engine units per year.
Volkswagen will open an engine factory in Kaluga in August-November 2015. With the help of the company’s other manufacturing facilities, this will boost localization to 50%, Regional Manager of Skoda Auto Russia Miroslav Kroupa said.
Production will start with the 1.6 motor (110 horsepower), which will be installed in the VW Golf, Polo sedan, Octavia, Skoda Rapid, and Yeti and be teamed with the classic six-speed automatic.
Along with the production of bumpers, seats, floor mats, tires, wheels, and glass, the new facility will increase Volkswagen’s localization to 50%.
In February, the Volkswagen Group started producing its first batch of internal combustion engines at the Kaluga factory, which will be fully up and running in 2015. Pre-serial engines will be sent off for climatic and road testing.
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