President Putin has met the VW CEO Matthias Müller

President Putin has met the VW CEO Matthias Müller

RusAutoNews.Com – Volkswagen Group CEO Matthias Muller has discussed the issues faced by the company in Russia with President Vladimir Putin, at a meeting in Kremlin.

The Russian leader said he was ready to help the German automotive giant’s efforts to arrest sliding sales and reinvigorate its business in the country.

The press secretary of Vladimir Putin: Dmitri Peskov has stated that Muller and Putin have discussed the business development plans of Volkswagen.

An industry source said Müller’s meeting with Putin had been to discuss “exclusive benefits” for his company.

The meeting between Müller and Putin in Moscow comes at a critical time for VW, whose sales in Russia have seen a sharp downturn in recent years, plunging from their 2012 peak of almost 3 million vehicles a year to around 1.4 million cars now. 

The main production of Volkswagen in Russia takes place at the full-cycle car factory in Kaluga. Two VW models – Polo sedan and Tiguan crossover are manufactured at the plant with the aforementioned method, alongside Skoda Rapid liftback. Due to falling demand (the total sales of VW Group have fallen to 156,712 vehicles in Russia in 2016, or by 4.9%), the plant has fulfilled less than half of its annual capacity of 225,000 units). 110,000 vehicles have been manufactured at the facility in 2016. The company has recently discontinued the SKD assembly of Audi A6 and A8 sedans in Kaluga.