Volkswagen Group Rus and Russian Kaluga plant sold

The Kaluga plant, previously regarded as the Volkswagen (VW) Group’s largest asset in Russia, is now being sold along with the entire Volkswagen Group Rus. After much speculation, VW has officially obtained approval from the authorities in Moscow to proceed with the sale. The price at which the sale is being conducted appears to be quite advantageous.

The buyer of these assets is the Russian car dealer Avilon, who has agreed to acquire all of VW’s assets in Russia for a sum of approximately 125 million euros. This acquisition will grant Avilon control over Volkswagen Group Rus and its subsidiary companies, including the Russian Scania dealerships. The transaction encompasses the shares of local subsidiaries such as Volkswagen Components and Services LLC, Scania Leasing LLC, Scania Finance LLC, and Scania Insurance LLC.

The VW Group currently employs approximately 4,200 individuals at the Kaluga plant, which is situated approximately 200 kilometers southwest of Moscow. The plant was established in 2007. Following the Russian invasion of Ukraine in February 2022, VW halted car production in Russia, and the export of cars to the country was also suspended.

VW has officially confirmed the sale of its business operations in Russia, as well as the Kaluga plant. The buyer, Avilon, a car dealer, is set to acquire these assets, along with control over Volkswagen Group Rus and its subsidiary companies, for the aforementioned price of 125 million euros.