Speaking at the signing ceremony
in Nizhny Novgorod Detlef Wittig, General Representative of
Volkswagen Aktiengesellschaft, said: "The agreement with GAZ is
a further milestone in expanding our industrial commitment in
Russia. Apart from the contract manufacturing of 110,000
vehicles per year at GAZ, we will also be expanding capacity at
our plant in Kaluga in order to participate in the boom on the
Russian market. We look forward to continued open and
constructive cooperation with GAZ."
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. Back in February, the Volkswagen
Group and the GAZ Group signed a memorandum of understanding
regarding joint automobile production in Russia.
Investment in production at Nizhny
Novgorod will amount to some €200 million. This covers expanding
and modernizing existing paint shop and assembly facilities as
well as setting up a new body shop.
In addition, Volkswagen and GAZ
will be implementing a comprehensive training program for
employees in Nizhny Novgorod, thus ensuring that the locally
produced models meet the Volkswagen Group’s global quality
(June 14, 2011)