Volkswagen AG Searches for First Russian Manufacturing Site
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July 11, 2004: Volkswagen AG, the largest automobile manufacturer in
Europe, is contemplating several sites for a possible new car plant in
Russia. Forbes reports that, according to company spokesman Fred Baerbock,
Volksawgen is "researching several sites. . . There is no decision yet."
The town of Stupino, 60 miles outside Moscow, is the frontrunner of the
sites being considered- it is already home to Stupinsky Fabricating, a large
aluminum manufacturer in the area, as well as a yogurt processing plant for
Campina Dairy, and a manufacturing center for candy giant Mars, Inc.
Stupino is also a hot spot for skydivers from all over the world.
Although he said there was no deadline for making a decision on the site,
Baerbock did mention that the facility would likely be a car plant rather
than a commercial vehicles plant. He did not, however, specify which models
would be produced in the Russian plant.
As early as December 2002, Volkswagen released reports claiming that the
company was in talks with the Moscow regional government about building the
factory and the possibility of lowering import duties on auto parts.
Volkswagen's total sales in Russia fell seven percent in 2003 to 7,408 cars,
including 839 BOra/Jetta models. The company's best-selling model in Russia
is the Passat. -Ian FitzGerald, Senior Writer
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