Volkswagen, Europe’s largest carmaker, inaugurated its new Russian plant yesterday (Nov. 28, 2007). The first models to leave the assembly line were the Volkswagen Passat and Skoda Octavia. The new plant which is located in Kaluga, 160 kilometers (99 miles) southwest of Moscow, will assemble some 66,000 units of the two brand models in 2008 under the now complete first development stage of the plant. In the second development stage from 2009, the plant with a maximum capacity of 150,000 vehicles will begin production at its own body shop, paint shop and final assembly line. "With the start of vehicle assembly at our new plant in Kaluga, the Volkswagen Group has definitively arrived in the emerging Russian market. Local production of Volkswagen and Skoda brand vehicles in the up-and-coming city of Kaluga now gives us the chance to increasingly profit from rapid growth on Russia's automotive market," Chief Executive Martin Winterkorn said.
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