Volkswagen Group opens Russia’s first foreign-owned engine plant

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The Volkswagen Group has opened a new 150,000-capacity engine plant in Kaluga, Russia, three years after building work began.

Attending the official opening were Russian prime minister Dmitry Medvedev and VW board member Thomas Schmall. Volkswagen says it is the first foreign car maker to operate its own engine plant in Russia. The OEM has invested US$279m in building the facility, with 400 jobs created.

The 32,000m² Kaluga factory will have a daily build target of 600 of VW’s recently developed 1.6-liter gasoline engine from the EA211 modular family, which will then be installed in the Polo and Jetta as well as several Skoda models, including the Rapid and Octavia.

The plant has come about as part of the Russian government’s Decree 166, signed by Volkswagen and numerous other car makers in 2011, which promised grants and cuts in import duties for vehicles produced wholly or partly in Russia.

“The development of Volkswagen in Kaluga – starting with the vehicle plant and continuing with the engine plant – symbolizes the strength of this region,” said Thomas Schmall. “We intend to continue this development in future because we believe in the considerable potential offered by the Russian automobile industry.”

September 8, 2015

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Dean has been with UKi Media & Events for over a decade, having previously cut his journalistic teeth writing and editing for various automotive and engineering titles. He combines extensive knowledge of all things automotive with a passion for driving, and experience testing countless new vehicles, engines and technologies around the world. As well as his role as editor-in-chief across a range of UKi's media titles, he is also co-chair of the judging panel of the International Engine of the Year Awards.

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