VW to Decide on Site for Russian Engine Plant in 2012

Europe’s largest carmaker Volkswagen AG will select land to set up a €100 million engine plant in Russia in early 2012, Markus Ozegovic, CEO of Volkswagen Group Rus said. According to him, the company is currently considering two optional sites. The new factory could be built either in Kaluga, where VW’s Russian car assembly facility is located, or in Nizhny Novgorod, where VW’s local production partner GAZ Group operates a car plant.

Additionally, Ozegovic has revealed plans to build a new Skoda car at the Kaluga plant starting mid-2012. However, he did not elaborate on the exact model.