VW's Russia plant to be sold to local dealer group, report says

Russia's Avilon dealership group is poised to buy Volkswagen Group's Kaluga factory, Moscow-based business news site RBC reported on Wednesday, citing two unidentified sources.

RBC reported that one of the sources said the deal was already agreed, and would be finalized on March 3, which coincides with the automaker's upcoming supervisory board meeting.

VW said it was considering various scenarios, including selling Volkswagen Group Russia's assets to a third party, but that a decision had not yet been made.

Avilon did not immediately respond to requests for comment.

The factory, in which VW has invested more than $1.1 billion since its opening, employs 4,200 people and has capacity of 225,000 vehicles a year.

The plant has been furloughed since March 2022, when sanctions imposed by Western countries over the conflict in Ukraine caused supply chains break down.

A string of Western car brands have quit the Russian market in the year since Moscow sent troops into Ukraine, either suspending production or selling their assets in the country to local buyers.

Renault transferred its 68 percent stake in Russia's biggest carmaker, AvtoVAZ, to an auto research institute for one symbolic ruble. Renault's factory in Moscow was passed to the city's government. Renault has the right to buy back its AvtoVAZ stake within five to six years from NAMI.

Nissan transfered its shares in Nissan Manufacturing Russia to NAMI for 1 euro. The deal gave Nissan the right to buy back the business within six years. The sale included Nissan's car plant and research facilities in St. Petersburg as well as its sales and marketing center in Moscow.