VW does not recognize GAZ claims of lost profits and damages as part of 28.4 bln ruble lawsuit

NIZHNY NOVGOROD. July 17 (Interfax) - German automaker Volkswagen does not recognize the validity of the Gorky Automobile Plant's (GAZ) claims for lost profits and damages in the latter's lawsuit for 28.4 billion rubles: it believes that the agreement between the parties does not entail an obligation to supply engines.

This position was expressed by a VW representative at a hearing on Monday, an Interfax correspondent reported from the Nizhny Novgorod Region Arbitration Court. The defendant explained to the court that the contract is of a framework nature, since it does not contain an essential condition specifying delivery volumes. The plaintiff's obligations in this regard arose only for the supply of agreed volumes of engines. In total, VW delivered 768 engines in 2021, which was confirmed by the plaintiff.

"After that, there were no orders. The defendant did not terminate the contract unilaterally. No losses, especially lost profits, can be recovered," a VW representative said.

The plaintiff's representative of the at the time of the hearing had not had time to become acquainted with VW's response to the claim, and the court postponed consideration of the case until October 4.

Compensation for lost profits due to VW's refusal to supply GAZ with car engines has become one of the claims in GAZ's lawsuit. GAZ is also seeking to recover damages received in connection with investing in production as part of its cooperation with Volkswagen.