Jump to content
Forums Gone... but not forgotten!
  • Welcome to Forever Pontiac

    Welcome to Forever Pontiac, full of great ideas for Pontiac performance, maintenance, or for peer-to-peer assistance from Professional and DIY mechanics. Also, compete in our Pontiac monthly competitions. Please register if you'd like to take part.

Archived

This topic is now archived and is closed to further replies.

Ringo64

RSS VW announces Russian shutdown, cites floundering market

Recommended Posts

Filed under: Plants/Manufacturing, Volkswagen, Russia

b1b77b77a96241d8b3c5194b935e53eb.jpeg

The Russian auto industry is not in a great place right now. A weakened currency, the rouble, is stinging automakers, and in the case of Volkswagen, has prompted a trimming of production.

VW lowered production projections at its Kaluga factory from 150,000 units per year to just 120,000. Kaluga, which builds the Tiguan crossover (shown above with Russia's Vladimir Putin) and Polo compact, as well as the Skoda Fabia and Octavia, kicked off its production reduction yesterday, with the start of a ten-day furlough.

The German manufacturer isn't exactly pulling the plug on its Russian ops - VW was quick to point out to Reuters that a new engine production facility and parts depot will go online in Russia next year - although VW's trimming of expectations does reflect larger concerns in the country, the most obvious of which were voiced by Opel.

"There is no doubt that the situation in Russia is a concern. The market has shrunk substantially over the past few months and the Ukraine crisis has added to the uncertainty," Opel spokesman Peter Christian Kuespert told Automobilwoche, according to Reuters.

VW announces Russian shutdown, cites floundering market originally appeared on Autoblog on Wed, 10 Sep 2014 11:25:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

http://www.autoblog.com/2014/09/10/vw-russian-production-shutdown/

Share this post


Link to post
Share on other sites

Tired of these Ads? Register Today!


Tired of these Ads? Purchase Enhanced Membership today to remove them!
×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.