5 Jul 2022 17:21

VW shuttering Nizhny Novgorod office, GAZ employees to remain employed

MOSCOW. July 5 (Interfax) - The Russian representative office of the German automaker Volkswagen, Volkswagen Group Rus LLC, is closing its office in Nizhny Novgorod, where the company conducted contract assembly at the facilities of the GAZ group, and will trim around 60 employees from its own office, the company's press service told Interfax.

Volkswagen has not been supplying cars to Russia since the beginning of spring, and has not been manufacturing vehicles at its plant in Kaluga nor at the GAZ production site in Nizhny Novgorod, where Skoda Octavia, Skoda Karoq and Skoda Kodiaq models were previously assembled under contract.

"Given the overall high level of uncertainty and the impossibility of predicting a potential resumption of manufacturing in Nizhny Novgorod, Volkswagen Group Rus LLC has decided to start the official procedure for closing its own office in Nizhny Novgorod on July 5," VW's press service told Interfax.

The company noted that the procedure for closing the office is in full compliance with Russian labor legislation, and all rights of the employees are being observed.

"At the beginning of June, a program of voluntary termination of employment contracts was launched for the employees of Volkswagen Group Rus LLC in Nizhny Novgorod. Most of the employees have accepted the offer to leave the company voluntarily. At the moment, approximately 60 employees will be affected by the office closure," Volkswagen Group Rus LLC's press service said.

The company emphasized that the matter was not about the production personnel of GAZ and not about the production site where VW models were assembled under contract, but, rather, only about the matter of Volkswagen Group Rus LLC's own employees.

The GAZ group also emphasizes that there are not any plans to liquidate manufacturing where VW models were assembled under contract.

"The production site belongs to GAZ, and GAZ does not plan to liquidate it, but, rather, aims to ensure an alternative utilization of the facilities. The production site is currently in downtime, and employees continue to receive 66% of their salaries and all social guarantees," the press service said.

GAZ also notes that the main conveyors of the Gorky Automobile Plant for manufacturing Russian brand vehicles continue to operate as usual and according to a full-time schedule.