VW Will More than Double Investment in Russia

Volkswagen AG says it will spend €840 million ($1.1 billion) from 2013 through 2015 to expand its production capacity in Russia.

The investment is in addition to the unspecified amount already allocated to the Russia unit under VW's previously announced €16.6 billion ($21.7 billion) global investment over the next three years.

The company plans to use nearly one-third of the fresh capital to erect a new engine facility in Kaluga with annual capacity of 150,000 units and boost capacity at its nearby assembly plant to 225,000 vehicles per year.

VW also intends to invest in expanding its joint venture with Russian truckmaker OAO GAZ in Nizhniy Novgorod, which began assembling crossover vehicles from kits this year. The partners aim to make 110,000 VW- and Skoda-brand vehicles annually by 2015.