Currently reading: VW Group offers Russian workers payouts if they quit voluntarily
German car maker ceased production in Russia after the invasion of Ukraine

Volkswagen will offer payouts to workers who voluntarily quit their jobs at a currently closed Russian car assembly plant.

Around 200 employees at the Nizhny Novgorod factory have been offered the opportunity, which includes medical insurance and financial compensation, Reuters reports

The factory was shut “until further notice” following Russia’s invasion of Ukraine in March. Vehicle exports to the country were also ceased.

Now, a Volkswagen spokesperson has confirmed to Reuters that it will help workers who take up the offer, until the end of 2022.

Although no monetary value has been released, Russian paper Kommersant cited union sources as saying that employees who agreed to the company's offer before 17 June would receive six months' salary.

As yet, no reason has been given for this decision, but reports suggest it is a way for VW to minimise the financial impact the war is having on the company. This move may also suggest that the car maker is not expecting the factory to reopen before the end of the year.

This offer comes after the plant, which is owned by commercial vehicle manufacturer Gaz Group, was closed because of Western sanctions. Although VW doesn’t own the factory, it has a contractual agreement for several of its models to be assembled there, including the VW Taos and three Skoda models: the Kodiaq, Karoq and Octavia. 

At the same time, VW’s plant in Kaluga, Russia, which employs around 4200 workers, was also shut. The VW Polo, VW Tiguan and Skoda Rapid are built by Gaz under licence, as well as the Audi Q7 and Audi Q8. Petrol engines for an array of its models are also manufactured there.

At the time of the closures, VW said it “takes its responsibility for the affected employees in Russia very seriously.”

As well as VW, ​​Aston Martin, BMW, Ford, General Motors, Honda and Jaguar Land Rover are among the firms to have halted sales in the region.

Join the debate

Comments
1
Add a comment…
Cobnapint 11 June 2022
ALL car companies (and any other company for that matter) that had any dealings whatsoever with Russia need to make it very clear that until Russia pulls it troops out of Ukraine, Putin is removed and replaced with somebody that stops playing the geopolitical deviant, they won't be back.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Reset your password

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

A link has been emailed to you - check your inbox.



Don't have an account? Click here to register

Privacy Notice

Haymarket Media Group, publishers of Autocar Business, takes your privacy seriously. Our Automotive B2B brands and partners would like to keep you updated by email, phone and SMS with information and opportunities which we hope will help you in your work. Learn more about how we use your information when creating an online account. We believe we can demonstrate a legitimate interest in using your details for marketing messages, but if you do NOT wish to receive these messages, please click here.

I DON'T want messages from Autocar Business or other Automotive B2B brands via the following channels:
by email       by phone       by SMS

I DON'T WANT messages from you on behalf of your trusted partners via the following channels:     by email

We will use your information to ensure you receive messages that are relevant to you. You can unsubscribe at any time. Please see our Full Privacy Notice for more information.