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European parts supply chain cut off, VW will stop production in Russia

2020-04-07

 According to foreign media reports, on March 24, Volkswagen Group's Russian branch said that due to the outbreak of the new crown virus in Europe, resulting in a shortage of parts supply from Europe, Volkswagen Group will suspend car production in Russia.
The company revealed that its car manufacturing plant in Kaluga, Russia, and the assembly line of its Russian foundry manufacturer GAZ Group in Nizhny Novgorod will stop production from March 30 to April 10. Russian Federation law stipulates that the company needs to continue to pay employees during the suspension period.

Volkswagen produces Tiguan SUVs, sedan Polo small cars, and Skoda Xinrui models at its Kaluga California plant. In addition, the plant also produces 1.6-liter gasoline engines and SKD Audi Q8 and Q7. The Nizhny Novgorod plant produces Skoda Octavia, Kodiak and Korok models.
Last week, Volkswagen announced that in view of the fact that the new coronavirus has infected more than 330,000 people worldwide, the company ’s European plant will be temporarily suspended for a period of two weeks.
At present, global auto manufacturers have announced the suspension of production in order to protect employees and respond to the market demand that has been affected by the epidemic. Despite the imminent suspension of production, Volkswagen Group Russia stated that they are currently able to "provide a stable supply of cars and parts to dealers and customers." The Russian branch of Volkswagen Group has more than 60 local suppliers and has localized more than 5,000 components.
Reprinted to Gasgoo Community