Volkswagen tells you auf wiedersehen to Russia. The German company sold all of its shares and its factory to Avilon, a Moscow-based dealer, and left Russia entirely, following the path of several other automakers since the conflict with Ukraine broke out.
While no details of the deal have been given yet (just a brief press release from VW) various reports estimate that Avilon paid approximately 125 million euros to acquire the Russian operation of VW and its factory in the western city of Kaluga, which has enough capacity to manufacture 225,000 vehicles a year.
This agreement, which has already been approved by the Putin government, It also includes its structure of importers with their respective distribution and after-sales businesses.as well as warehousing and financial services activities with all associated employees.
The business did not go well for Volkswagen. When it opened its factory in Kaluga in 2007, the Germans spent an amount of 774 million euros, quite a bit more than what he got for parting with it. Although of course, this action is not so much motivated by financial issues but rather by political issues, since the Western bloc commanded by the United States and powerful countries in Europe have been for a long time pressuring their companies to leave Russian territory as part of the economic war they wage.
The important thing is that the 4,000 employees in the factory have remained on the payroll since the beginning of the war awaiting information about the future of the company in Russia and apparently they will continue to work there under a new mandate.
It is not yet known if the agreement signed between Volkswagen and Avilon includes a clause to be able to return to the country. Other brands such as Ford, Renault, Mercedes and Stellantis have agreed that they can buy back their shares and return in the future without restrictions (although perhaps with some grudges).
