Winterkorn Salutes Putin

Bertel Schmitt
by Bertel Schmitt

Days after Vladimir Putin, well, encouraged foreign carmakers to come to Russia, open car factories and better bring the latest technology, or else, Martin Winterkorn announced that Volkswagen is planning a new assembly line at Russia’s GAZ and that they will expand their factory in the Kaluga region in the future. Winterkorn said that after meeting Putin himself and most likely after having received a similar speech as what was previously broadcasted.

“The development of the Russian market has led to the result that our existing capacity is already not enough,” Winterkorn told Putin, according to Reuters. The Kaluga factory has a capacity to produce 150,000 cars per year, but Volkswagen expects to sell 360,000 cars in Russia by 2018. (Why the hell is everything at Volkswagen tied to 2018? Because it coincides with the 100 year anniversary of an event that was not one of the most glorious in Germany’s history?)

Russia had been feted as Europe’s leading car market, until sales imploded in 2009.

This year, the Russian car market has turned around, and sales are increasing. The government expects a 15 percent rise for the year as a whole to around 1.7m.

GAZ is part of tycoon Oleg Deripaska’s business empire, the same Deripaska that wanted to enter an alliance with Opel and Magna. And we all know how that ended.

Currently, GAZ has no foreign partner. GAZ had bought a previous generation Chrysler Sebring line from Chrysler. It has a capacity of 150,000 cars a year, but “is currently idle,” says Reuters.

A lot of companies are supposedly in talks with GAZ. GM never stopped talking with them. Insideline reports that Mercedes is thinking building their E-Class at GAZ.

GAZ confirmed to Reuters that they are in talks with Volkswagen over the assembly line, details were disclosed. But if Winterkorn and Putin say so … The two probably got along just fine. Putin speaks fluent German. From 1985 to 1990, Putin was the KGB’s rezident in Dresden, in charge of industrial, well, research.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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 2 comments
  • Avtopromenade Avtopromenade on Sep 03, 2010

    Not a good idea. Winterporn, we don't want your kind here (at least I don't). Run back to your Wolfs[lair]burg.

  • Rnc Rnc on Sep 03, 2010

    Germany and Russia seem to have a very good relationship (but one based on mutual needs). To Russia, Germany is Korea's Japan in terms of industrial knowledge/development and Germany receives secure resources and energy, probably at very nice rates. (and I know about the ukraine issue, Germany keeps a three month supply in the system at any given time)

  • SCE to AUX The fix sounds like a bandaid. Kia's not going to address the defective shaft assemblies because it's hard and expensive - not cool.
  • Analoggrotto I am sick and tired of every little Hyundai Kia Genesis flaw being blown out of proportion. Why doesn't TTAC talk about the Tundra iForce Max problems, Toyota V35A engine problems or the Lexus 500H Hybrid problems? Here's why: education. Most of America is illiterate, as are the people who bash Hyundai Kia Genesis. Surveys conducted by credible sources have observed a high concentration of Hyundai Kia Genesis models at elite ivy league universities, you know those places where students earn degrees which earn more than $100K per year? Get with the program TTAC.
  • Analoggrotto NoooooooO!
  • Ted “the model is going to be almost 4 inches longer and 2 inches wider than its predecessor”Size matters. In this case there is 6” too much.
  • JMII Despite our past experience with Volvo my wife wants an EX30 badly. Small, upscale, minimalist EV hatch is basically her perfect vehicle.
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