Volkswagen Enlarges Footprint In Russia. With A Yeti

Bertel Schmitt
by Bertel Schmitt

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.”

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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  • Cmoibenlepro Cmoibenlepro on Jun 14, 2011

    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.

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