VW Affirms Russia Expansion

Volkswagen AG tells Reuters it will move forward on construction of an €840 million engine plant in Kaluga, Russia, even as Europe ponders sanctions against the country for its seizure of Crimea.

CEO Martin Winterkorn says VW is monitoring developments closely, but he declares, "We will not stop the engine plant." The company spent €1 billion to develop its operations in Russia between 2006 and last year.

Last year VW Group sales in Russia dropped 5% to 299,100 units, and its market share slipped half a point to 10%, according to the Moscow-based Assn. of European Businesses. Group sales in the first two months of 2014 fell 6% year on year to 37,800 units.