AutosFormer Volkswagen factory in Russia begins test production of Chinese Chery cars

Former Volkswagen factory in Russia begins test production of Chinese Chery cars

After being sold to Russian parties due to the outbreak of war in Ukraine, the Volkswagen factory struggled for months to find a reliable partner. Eventually, they agreed with Chery. However, it's still uncertain how long this partnership will last.

There was a Volkswagen factory in Kaluga.
There was a Volkswagen factory in Kaluga.
Images source: © Press materials | CC BY-SA 4.0

2:43 PM EST, December 3, 2023

Volkswagen, similar to many other European brands, withdrew from Russia following the escalating conflict in Ukraine. Subsequently, the Kaluga factory was acquired by Art-Finance, an organization that manages the local automotive group AGR.

Initiating operations in the former Volkswagen factory proved to be a significant challenge for the Russians, a predicament recently reported on. A majority of the factory workers - two-thirds to be precise - were sent on compulsory leave. Moreover, financial incentives were offered to those who chose to resign voluntarily.

These developments were accompanied by negotiations with the Chinese corporation Chery, which eventually led to some preliminary agreements. As "autostat.ru" reports, citing the "Autopotok Telegram" channel, test assembly of Chery Tiggo 7 PRO Max crossovers has begun at the factory.

"Autonews.ru", nonetheless, emphasizes that this is a temporary measure to examine the potential of collaboration, and specified binding decisions regarding a shared future have not been finalized yet. Therefore, it remains a possibility that there could be further challenges for the former Volkswagen factory under Russian management.

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