Written By Volkswagen, the German automaker, has announced that it will be selling its Russian shares and factory to a local player, as part of a strategic shift to focus on electric and autonomous vehicles. The move is seen as a bold and positive step for both Volkswagen and the Russian automotive industry.
The deal, which is expected to be completed by the end of the year, will see Volkswagen sell its production facility in Kaluga, as well as its stake in the Russian engine manufacturer, GAZ Group. The buyer is a consortium led by the Russian businessman, Mikhail Gutseriev, who is the founder of the oil company, Russneft.
The sale of Volkswagen’s Russian shares and factory is part of a broader strategic shift for the company, as it seeks to invest heavily in electric and autonomous vehicles. Volkswagen has set a goal of becoming the world’s leading electric vehicle manufacturer by 2025, and has already invested billions of dollars in developing new electric models and building out its charging infrastructure.
By selling its Russian shares and factory, Volkswagen will be able to focus more resources on its electric and autonomous vehicle programs, which are seen as the future of the automotive industry. The move is also expected to help Volkswagen improve its profitability, as the Russian market has been struggling in recent years due to economic sanctions and a weak ruble.
For the Russian automotive industry, the sale of Volkswagen’s shares and factory is seen as a positive development. The industry has been struggling in recent years, due to a combination of economic sanctions, a weak ruble, and a decline in oil prices. However, with the sale of Volkswagen’s shares and factory to a local player, there is hope that the industry will be able to rebound and attract more foreign investment.
The sale of Volkswagen’s shares and factory is also expected to create new opportunities for Russian automakers, who will be able to take advantage of the production facilities and expertise that Volkswagen is leaving behind. This could help to boost the competitiveness of the Russian automotive industry and create new jobs in the country.
In conclusion, Volkswagen’s decision to sell its Russian shares and factory to a local player is a bold and positive development for both the company and the Russian automotive industry. By focusing more resources on electric and autonomous vehicles, Volkswagen is positioning itself for a promising future in the rapidly evolving automotive industry. And for the Russian automotive industry, the sale of Volkswagen’s shares and factory is a much-needed boost, which could help to attract more foreign investment and create new opportunities for local automakers.
