By on June 14, 2011

As you know, the Russian government offered foreign automakers a deal: Invest heavily into the Russian auto industry, and Mother Russia will let you import parts and components at negligible or zero duty rates. Present your plans no later than July 1. Here is Volkswagen’s answer: Volkswagen and the GAZ Group today signed an agreement to assemble Volkswagen and Škoda models under contract at the GAZ plant in Nizhny Novgorod, some 260 miles east of Moscow. The planned production volume is 110,000 vehicles per year.

GAZ will build the Volkswagen Jetta, Škoda Octavia and Škoda Yeti models for the Russian market. The Škoda Yeti, is scheduled to start rolling off the production line by the end of 2012.

In its press release, Volkswagen is going to great pains to point out that “the collaboration with GAZ is based on an additional agreement to Decree 166 relating to customs duties benefits which was concluded with the Russian government at the end of May.”


Get the latest TTAC e-Newsletter!


One Comment on “Volkswagen Enlarges Footprint In Russia. With A Yeti...”

  • avatar

    I think it is a good industrial policy, instead of opening borders freely while all local producers start to outsource production overseas or close.
    They open borders only to corporations who intend to invest to start production locally; makes much sense.

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • Lou_BC: @Higheriq – I would buy a regular cab 1/2 ton over an extended cab small truck. If one has family then...
  • Lou_BC: @Guitar man – globally yes, USA or Canada no.
  • Guitar man: Colorado is available with a single cab, stripper version with a petrol engine. The length is the same as...
  • donatolla: “Unfortunately, you can’t get a fully loaded GT Sport without sacrificing the clutch pedal.”...
  • SuperCarEnthusiast: Same size as the Macan and a little bigger then the Evoque! I rather buy an used luxury then the...

New Car Research

Get a Free Dealer Quote