Category: World / December 11, 2012 3:54 PM EST
Russian Prime Minister Dmitry Medvedev visited a Volkswagen auto plant in the town of Kaluga near Moscow on Tuesday following a groundbreaking ceremony for a Volkswagen engine factory nearby. According to Reuters the plant is a 774 million euro investment on the part of the German auto Maker and the entire production process will take place there.
"Investment doesn't always happen where it's being waited for. In this sense, I think that the Kaluga ground, where everything is done under the leadership of the Kaluga region, it's the right kind of business model, thanks to which the region is developing. A lot of investment is coming. Not only is Volkswagen actively developing on this ground, but also Volkswagen's competitors. And, probably this is good, this is the basis of the market economy. We only have to build an airport and we can think it's the best investment project."
Earlier in the day Prime Minister Medvedev attended a groundbreaking ceremony for a Volkswagen engine factory also in Kaluga. According to the Deutsche Press Agenteur the new plant will cost 250 million euro and the company expects to produce 150,000 engines there by 2015.
In recent years Russian auto sales have spiked, inviting Western investment. However, that trend is starting to slow and could flatten into 2015, according to Reuters.