Volkswagen has started production of internal combustion engines at a new EUR250 million plant in Kaluga, Russia, RIA Oreanda News reports. The engine facility, which has currently only begun pre-serial production of engines, will allow Volkswagen to increase the localisation of its vehicles.
Significance: Volkswagen vehicles that are currently assembled in Russia have imported engines installed in the vehicles. The new Kaluga engine base will allow for locally produced engines to be fitted in the models assembled in Russia which include the Volkswagen Tiguan, Polo and Jetta as well as the Audi Q3, Q5, A6, A7 and A8, and some Skoda models. In the second half of 2015 Volkswagen will start deliveries of spare parts and accessories from a new warehouse in Chekov, near Moscow. Meanwhile in 2014 component supplier Continental opened an engine component plant near the Volkswagen Kaluga vehicle assembly plant.
