MOSCOW – Volkswagen Group will cease output in Nizhny Novgorod, Russia, the place VW and Skoda vehicles have been being assembled beneath contract with GAZ Group, a commerce union mentioned, 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 car exports to Russia could be stopped with instant impact.
Citing VW’s announcement to the employees made on Tuesday, the Workers’ Association commerce union informed Reuters that the German firm would finish its operations in Nizhny Novgorod, which is 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 mentioned, citing VW’s assertion to its employees.
According to Trudovoy, meeting gear and different equipment will likely be moved to VW’s Kaluga plant, which the automaker owns straight. VW employs almost 4,200 staff at Kaluga.
VW declined to touch upon the choice to finish manufacturing however mentioned 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 will likely be affected by the workplace closure, VW added.