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VW looks to expand in Russia, up sales to 360,000 by 2017
Volkswagen started full-cycle production at the Kaluga plant in October 2009.
© RIA Novosti. Mikhail FomichevRelated News
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Volkswagen expects to expand production in Russia and boost annual sales to 360,000 cars by 2017-18, VW CEO Martin Winterkorn said on Thursday.
VW plans, in the medium term, to sign contracts with Russia's GAZ Group for the use of its production facilities and in the long term expand its plant in the Kaluga region, Winterkorn told Prime Minister Vladimir Putin during a meeting.
He said that as the Russian market is expanding, existing production capacities are insufficient.
Putin said the Russian government would do all it could to create an investor-friendly environment for VW in Kaluga.
"I would like to thank you and your colleagues for the decision to set up production in Kaluga. Despite the financial crisis, your company is implementing all of its plans," Putin said.
"The Russian government and local authorities will do all they can to create favorable conditions for this investment: After all, it is 570 million euros [$730 million]."
Volkswagen started full-cycle production at the Kaluga plant in October 2009 and currently assembles Volkwagen Tiguan and Skoda Octavia cars there. Its planned capacity is 150,000 cars a year.
Volkswagen's Russia director Dietmar Korzekwa said in June VW plans to sell 10,000 automobiles this year and 30,000 next year.
MOSCOW, September 2 (RIA Novosti)
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- arnoldvinette@yahoo.comExtremely Unlikely for this to happen in 201801:45, 03/09/2010Unless Volkswagon is planning on selling electric vehicles in the russian market this forecast is not going to happen.
Why?
Because between 2015 and 2020 there is going to be a major collapse of the world wide oil market due to a global shortage. This shortage of oil will be cuased by the fact all of the world's existing oil reserves will be in very serious decline. Expect declines on the order of magnitude of 30% a year like Mexico is today.
The world reached Peak Oil in June 2006. The world is now in the flat line stage before the decline starts in 2011.
Between 2015 and 2020 there will be ongoing oil shortages that will initiate a world wide financial crisis like 2008-2009. Only this time it will be real.
By 2030 there will be no oil used in the production of gasoline and diesal fuel because it will be too expensive. Industrial socities based on oil will not exist after 2030, because oil supplies will not support either a national or global economy.
So if Volkswagon wants to sell 360,000 of their cars in Russia by 2018 they had better be electric or solar powered.
Arnold Vinette
