Volkswagen Group and GAZ Group expand cooperation in Russia

Volkswagen Group and GAZ Group have signed the agreements of cooperation in three areas. Signing official documents took place in Nizhny Novgorod in the presence of Valery Shantsev, the Governor of Nizhny Novgorod region.

Volkswagen Group and GAZ Group expand cooperation in Russia Extending the agreement on contract manufacturing

Volkswagen Group Rus and GAZ Group extend the joint project of producing Volkswagen and SKODA vehicles at Gorky automobile plant and open new opportunities for development of the model lineup. Marcus Osegowitsch, CEO of Volkswagen Group Rus and Vadim Sorokin, President of GAZ Group, have signed the agreement, under which the joint project has been extended until 2025, variants of models to be produced in Nizhny Novgorod have been determined and plans of adapting production capacities of Gorky automobile plant to launch new models for Volkswagen Group Rus have been shaped.
Volkswagen Group Rus and GAZ Group started cooperation in 2011, when the agreement of contract manufacturing Volkswagen and ŠKODA vehicles at Gorky Automobile Plant was signed. Within the project they have built new body and assembly shops, upgraded paint shop, improved logistics and quality control, as well as have arranged production of components for Volkswagen and SKODA vehicles. Employees have passed training at Volkswagen and SKODA plants in Germany and Czech Republic, moreover, a new training center has been opened at Gorky automobile plant. For the period of cooperation between Volkswagen Group Rus and GAZ Group in Nizhny Novgorod around 200 000 Volkswagen Jetta, SKODA Yeti and Octavia vehicles have been produced.
Marcus Osegowitsch: “We are expanding our successful partnership with GAZ Group within contract manufacturing, since local production has always been a key element of Volkswagen’s long-term development strategy in Russia. Even in the last three years of crisis we have been developing our business in Russia, having invested extra EUR 500 M in production and equipment. We are proud of our involvement in Russian automotive industry, as well as of a contribute to its development and creation of new jobs”.

Vadim Sorokin: “The agreements signed today confirm a success of our joint project with Volkswagen Group Rus, that has been lasting for already more than five years, and open a new phase of cooperation. Thus, we will now proceed to the second cycle of Volkswagen and SKODA contract manufacturing at Gorky automobile plant”.

Maximum annual amount of contract manufacturing of Gorky automobile plant in the framework of cooperation with Volkswagen Group Rus amounts to around 132 000 passenger cars. Total amount of investments in equipment and infrastructure is EUR 300 M. Currently about 3 000 people work at Volkswagen and SKODA contract manufacturing at GAZ plant in Nizhny Novgorod.
The contract of supplying engines Volkswagen 2.0 TDI from the plant in Salzgitter (Germany) for vehicles assembly at Gorky automobile plant

Within the new phase of cooperation GAZ Group will equip GAZ vehicles with engines Volkswagen TDI 2.0, shipped from the plant in Salzgitter (Germany). This diesel engine meets all regulatory requirements and environmental standards and will be installed on vehicles from Gazelle Next family, that includes dropside vehicles and chassis, all-metal vans and minibuses.

Thomas Schmal, Member of the Board of Volkswagen - Passenger cars, responsible for Autocomponents: “Supplying engines to GAZ Group, we significantly strengthen our partnership and positions in Russia as a manufacturer of autocomponents. For decades we have been developing an expertise in building engines, constantly focusing on innovation and future technologies. Today we roll out our competences to new markets”.

Siegfried Wolf, Chairman of the Board, Russian Machines: “Expanding cooperation with Volkswagen will ensure further upgrade of Gorky Automobile Plant capacities and will give a new push to development of our lineup and increase of export sale of GAZ vehicles”.
Volkswagen Truck & Bus and GAZ Group have signed an agreement of intent

Volkswagen Truck & Bus and GAZ Group have signed the agreement of intent, under which the companies will consider possibilities for long-term strategic partnership. The main emphasis will be placed on supply and joint assembly of autocomponents, as well as on development of joint product concepts.

Volkswagen Truck & Bus unit that includes brands MAN, Scania and Volkswagen Caminhões е Ônibus, and GAZ Group, that is the largest Russian manufacturer of light, medium and heavy commercial vehicles, already have a long experience of cooperation in bus sector. Now these trust-based relations will form a basis for expansion of mutually beneficial partnership. Volkswagen Truck & Bus has a broad package of technological developments, as well as an extensive international dealer network. An advantage of GAZ Group is an excellent knowledge of the internal market and developed production and marketing infrastructure.

Andreas Renschler, Member of the Board of Volkswagen AG, responsible for commercial vehicles, General Director of Volkswagen Truck & Bus unit, and Manfred Eibeck, CEO of Russian Machines, today have signed the agreement of intent in the presence of Valery Shantsev, the Governor of Nizhny Novgorod region, and the press.

As a next step, the companies will carefully study the possibilities for joint projects.

Andreas Renschler: “By signing this agreement, we take another important step in our global leadership strategy and clearly demonstrate our commitment to the Russian market. GAZ Group plays a leading role in the Russian market of commercial transport and has been a reliable partner for us for many years”.

Manfred Eibeck, CEO, Russian Machines: “Production of around 200 000 Volkswagen and SKODA vehicles, as well as more than 7000 our buses with Scania and MAN components at GAZ Group facilities has become a result of our long partnership. Expanding cooperation between our companies will allow studying our opportunities for development in commercial vehicles segment globally”.
Cooperation between Volkswagen Truck & Bus and GAZ Group has begun more than a decade ago.

Since 2007 MAN has supplied more than 5500 engines for city buses LiAZ of GAZ Group, that are operated in Moscow, St. Petersburg and other large cities of Russia and abroad.

Cooperation with Scania started in 2005 and resulted in creation of CRUISE tourist buses and VOYAGE coaches for sale in Russia and other countries.
More than 1600 GAZ Group buses with Scania components have been produced. More than 700 such buses had been supplied for the Olympic Games in Sochi in 2014. Today the companies implement a joint project of developing tourist buses of CRUISE series with new interior, increased functionality and improved systems ADAS (Advanced Driver Assistance Systems). The refined bus will be the best solution for transporting sports teams and fans in Russian cities hosting matches of FIFA World Soccer Cup 2018.