The Volkswagen Group will halt the production of Audi semi-knocked-down (SKD) kits at a plant near Central Russia's Kaluga this year, a respected Russian business daily said on Tuesday, citing a company spokesman. The group started producing SKD kits of Audi A4, A5 and Q5 models last autumn to fulfill its employment obligations to local authorities. The production of the A6 and Q7 models started this January. Currently all production capacities of the Kaluga plant are working to produce other brands, namely Skoda and Volkswagen. Recently, the group started an assembly line to produce the VW Polo, and hopes to produce 10,000 cars this year and triple production in 2011.
The spokesman did not elaborate on when the production would be halted, but sources at the plant say the assembly line will be stopped in the next three months. Audi dealers are pleased with the move, saying that foreign production would lead to an increase in sales, which already grew 27% in the first quarter of 2010, to 6,030 cars. Up to 80% of cars currently being sold in Russia are assembled at the Kaluga plant, a Central Russian dealer said. An unnamed source at another Russian Audi dealer said the move may increase the waiting period for consumers. Official sources in Audi Russia did not comment.
