Volkswagen Exits Russia, Completes Sale Of Russian Operations To Local Dealer

Shivani Kumaresan
1 min read
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In this article:

  • Volkswagen AG (OTC: VWAGY) has completed the sale of its assembly plant and other operations in Russia Art-Finance LLC, which the Russian Dealer Avilon supports. 

  • With the registration of the transaction, ownership of the shares held by Volkswagen Group Rus LLC and its subsidiaries are transferred to the buyer.

  • The transaction includes the production facilities in Kaluga, the importer structure and the warehousing and financial services activities with all its associated employees.

  • Also Read: Volkswagen April Deliveries Jump 39% As China Springs Back

  • The Russian government authorities have approved the transaction.

  • Though the parties have not disclosed a sales price, Russian media, citing local records, said the deal value was about €125 million ($135 million), reported the Wall Street Journal.

  • Volkswagen spent €774 million to build the Kaluga plant, which opened in 2007. The plant can produce 225,000 vehicles a year.

  • After Russia’s Invasion of Ukraine in 2022, Volkswagen halted operations at the plant and in Russia in February.

  • Volkswagen joins the list of European carmakers like Mercedes-Benz (OTC: MBGYY) and Renault (OTC: RNLSY) to exit the country in the past year.

  • Price Action: VWAGY shares closed higher by 0.22% at $16.10 on Friday.

  • Also Read: Automakers Warn The Proposed US Emissions Rules Pose Challenges

  • Photo via Wikimedia Commons

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This article Volkswagen Exits Russia, Completes Sale Of Russian Operations To Local Dealer originally appeared on Benzinga.com

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