A court in Nizhny Novgorod on the Volga has, following a lawsuit by the former Russian Volkswagen partner Gaz, transferred the assets of the Wolfsburg-based automobile group to Russia confiscated. Gaz has applied to the court to annul the termination of the assembly contract and to order VW to pay a contractual penalty of 15.6 billion rubles (190 million euros), the Interfax news agency reported on Monday, citing the court file.
The Russian carmaker Gaz, known in Soviet times for the manufacture of Volga limousines, was VW’s manufacturing partner in Russia until last year. Several VW and Skoda models were assembled at the Nizhny Novgorod factory. After the US sanctions against Gaz came into effect in May, VW officially withdrew from co-manufacturing and offered employees there a severance package.
The car dealer group Avilon was considered a possible buyer. However, such deals must be approved by the Russian government.
In addition, VW is currently trying to become less dependent on Asian suppliers, which dominate the battery market. The Wolfsburg-based carmaker is currently building a network of battery factories to cover the growing need for batteries with the number of electric cars. In return, VW Chief Technology Officer Thomas Schmall (59) is now also announcing entry into the mining business.