VW to halt Russia output due to supply shortage

MOSCOW -- Volkswagen Group will suspend its vehicle production in Russia over a supply shortage caused by the coronavirus outbreak in Europe, VW Group Rus said on Tuesday.

Production will be stopped from March 30 until April 10 at the automaker's car plant in Kaluga and at an assembly line in Russian contract manufacturer GAZ Group's factory in Nizhny Novgorod, the company said.

VW builds the Tiguan SUV, a sedan version of the Polo small car and the Skoda Rapid at Kaluga. The plant also produces 1.6-liter gasoline engines as well as semiknockdown (SKD) versions of the Audi Q8 and Q7.

The Skoda Octavia, Kodiaq and Karoq are made in Nizhny Novgorod.

Volkswagen last week said its plants in Europe would temporarily shut down for two weeks due to the spread of the coronavirus that has infected more than 330,000 people worldwide, as vehicle manufacturers globally shut factories to both protect workers and in response to falling demand.

Despite the impending stoppage VW Group Rus said it currently is able to provide "stable supplies of cars and spare pasts to our dealers and clients."

VW's Russian arm has more than 60 local suppliers and has localized more than 5,000 components.