BERLIN — Volkswagen Group has completed the sale of its Kaluga production plant in Russia and its local subsidiaries, the automaker said on Friday, ending months of wrangling with Russian authorities over the deal.
VW has sold its shares in Volkswagen Group Rus LLC to Art-Finance LLC, which is supported by auto dealer group Avilon, VW said in a statement.
The transaction includes the VW’s production facilities in Kaluga, its importer structure comprising the distribution and aftersales units and its warehousing and financial services activities, the statement added.
No details were given on the price. According to a source familiar with the matter, the deal is valued at 125 million euros ($138 million).
Work at the plant in Kaluga, south of Moscow, has been furloughed since March 2022 due to Russia’s invasion of Ukraine, which prompted Western countries to sanction Moscow leading to a breakdown in supply chains.
The factory has a production capacity of 225,000 vehicles a year and employed more than 4,000 people.
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