Volkswagen sold the Russian plant without a buyback option

Deal on the sale of the Russian plant Volkswagen to the dealer “Avilon” did not include a buyback option. This was announced by the Deputy Minister of Industry and Trade of the Russian Federation Albert Karimov, writes TASS.

The deal was closed 22nd of May. Its value was not disclosed. Earlier, Interfax reported that it was agreed at the level of 125 million euros.

On May 19, the Volkswagen press service reported that the company sold its stake in Volkswagen Group Rus to the Russian legal entity Art-Finance LLC, which owns the Avilon dealer. The latter also received the Volkswagen Components and Services, Scania Insurance, Scania Finance, and Scania Leasing companies owned by Volkswagen.

The Volkswagen plant in the Grabtsevo technopark near Kaluga was launched in the SKD mode in 2007. Two years later, it switched to full-cycle car production, including welding, painting and assembly. The enterprise can produce up to 225,000 cars per year. In 2015, a plant for the production of 1.6-liter engines was opened there (capacity – 150,000 per year).

Ministry of Industry and Trade promised provide assistance to the new owner for the speedy restart of the plant.