Volkswagen- GAZ talks move to an advanced stage

The discussion between Volkwagen, the popular German car maker and Russia’s GAZ have now reached a quite an advanced stage. The aim of this discussion is to establish a Russian vehicle assembly plant. Earlier, Volkswagen Chief Executive Martin Winterkorn had already commented in the month of September that the German automaker Volkswagen is thinking about an assembly deal with GAZ. The foreign automakers get some tax breaks from the local assembly. As far as Volkswagen is concerned, the company has already got plant in Kaluga. This plant has an yearly capacity of 150,000 units. As per the sources close to the matter, if the discussion with GAZ goes successful, Volkswagen intends to assemble as many as 150,000 products through the contract in Nizhny Novgorod.  

One of the spokeswoman of Volkswagen stated that the figure published in a certain paper was not correct but she also denied to give any further elaborate details on the matter. In the fifteen years’ period, the automakers of Russia saw the worst of recession time in the country. Now these Russian automakers are constantly looking towards the experts abroad who might help these automakers in getting some good market share. These automakers hope to use the foreign expertise that will also help the automakers in manufacturing products which can compete with the Western products. On the other hand, the foreign carmakers have started raising production in Russia. For instance, this year, Hyundai will start a plant in St. Petersburg. The reason behind such steps of the foreign automakers is that they want to avail the benefit of tax breaks provided to the locally manufactured products. GAZ. is The sheer big Russian player which has not got the support of any major foreign manufacturer. It is controlled by Oleg Deripaska, the great industrial tycoon. GAZ concentrates on the segment of  light commercial vehicles under it’s brand “Gazel”. Such light commercial vehicles include minibuses, small vans etc.

On the other hand, the German carmaker Volkswagen is planning to come up with a brand new model called Volkswagen Passat. Those who crave for something extraordinary and luxurious would definitely be impressed with the all new Passat.

Read More on : Volkswagen Passat