VW Could Launch Russia Exports to Offset Slumping Sales

Volkswagen AG tells Reuters it is reviewing the merits of utilizing idle capacity in Russia to make cars for export.

VW's factory in Kaluga assembles Skoda Rapid small cars and VW-brand Polo minicars and Tiguan midsize crossover vehicles. But VW and Skoda brand sales in Russia plunged 44% to 42,500 units and 34% to 32,200 units, respectively, in January-July, according to the Moscow-based Assn. of European Businesses.

The Kaluga plant has capacity to make 150,000 vehicles per year. In March VW reduced operations there from five to four days per week. In May it switched from three shifts to two. The company also idled the plant for an extra eight days in May.

Reuters says VW has made no decision to export vehicles from Russia. The news service adds that it isn't clear where such vehicles might be marketed outside the country.