Volkswagen Light Commercial Vehicles Launched in Russia in May or Introduced into China and India

Volkswagen is set to introduce its light commercial vehicle in Russia in May 2009. Stephan Schaller, head of the Volkswagen Commercial Vehicles Division, stated that the company aims to boost its market share in Russia from 5% to 10% and increase sales to 750,000 units by 2018. To support this growth, Volkswagen has installed an SKD (Semi-Knocked Down) assembly line at the Kaluga plant for the production of the T5 and Caddy models. The facility is scheduled to start operations in May. Schaller also mentioned that Volkswagen is exploring the possibility of establishing a local production base in both China and India to launch its Transporter model. While the company is currently evaluating the project's feasibility, it has not yet decided whether to utilize its existing production facilities or collaborate with local manufacturers. Despite expectations that light commercial vehicle sales will outperform the Transporter model, Schaller noted that further reductions in workforce may still be necessary at Volkswagen’s factories in Hanover, Germany, and Poznan, Poland. In 2008, Volkswagen Commercial Vehicles sold 500,000 units, marking a 2.9% increase compared to the previous year. Revenue rose by 3.3% to 9.6 billion euros (around 14.4 billion U.S. dollars), and operating profit jumped 25% to 375 million euros. However, the company anticipates a decline in all three key metrics in 2009 due to challenging market conditions.

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