MOSCOW – Volkswagen Group will cease output in Nizhny Novgorod, Russia, the place VW and Skoda automobiles have been being assembled beneath contract with GAZ Group, a commerce union stated, citing the corporate’s message to the plant’s employees.
VW introduced in March that manufacturing at its Kaluga and Nizhny Novgorod websites could be suspended till additional discover amid Western sanctions, and automobile exports to Russia could be stopped with speedy impact.
Citing VW’s announcement to the employees made on Tuesday, the Workers’ Association commerce union instructed Reuters that the German firm would finish its operations in Nizhny Novgorod, about 430 km northeast of Moscow.
The purpose for the transfer was a “lack of EU-produced parts, critically important components from Ukraine and lack of domestically made equivalents, disruption of logistics chains and inability to predict the terms and conditions of resumption of work,” chairman of the commerce union Dmitry Trudovoy stated, citing VW’s assertion to its employees.
According to Trudovoy, meeting gear and different equipment shall be moved to VW’s Kaluga plant, which the automaker owns straight. VW employs practically 4,200 employees at Kaluga.
VW declined to touch upon the choice to finish manufacturing however stated it closed its Nizhny Novgorod workplace beginning July 5, citing “high level of uncertainty and the inability to predict the potential resumption of production.”
The bulk of its 200 employees members on the Nizhny Novgorod plant have taken payoffs and stop voluntary and 60 individuals shall be affected by the workplace closure, VW added.