Porsche Board Member Allegedly Seeks Deal With Putin To Rebuild Russia’s Auto Industry

In the letter received by Der Spiegel, Siegfried Wolf proposed to Putin that the new Volga vehicles be centered on Skoda models

by Sebastien Bell

Siegfried Wolf, an Austrian entrepreneur and member of the supervisory board of Porsche SE, the keeping group that owns Volkswagen, has allegedly been in speak to with Russian President Vladimir Putin in an effort to revive Russia’s beleaguered automotive field.

In accordance to a 3-site letter attained by German newspaper Der Spiegel, Wolf proposed a plan to use Volkswagen vegetation that the corporation is making an attempt to divest by itself from to resurrect the iconic Russian car manufacturer, Volga.

In the letter that dates back again to January, Wolf advised that the new Volga vehicles would be primarily based on Skoda designs, but “completely redesigned externally” to incorporate typical Volga layout characteristics.

Go through: Volkswagen Reportedly Ending Operations At Russian Nizhny Novgorod Plant For Good

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The letter purportedly despatched by Wolf advisable a challenge that would call for a sizeable 60 billion rouble investment decision (about $735 million at present-day exchange rates) from Russia, aimed at generating close to 270,000 autos annually. The job aimed to revitalize the beleaguered Russian automotive marketplace, which has struggled because dealing with global sanctions. In exchange, Wolf’s undertaking promised to create or maintain 12,000 positions. Putin reportedly expressed support for the strategy. The project’s operator would be PromAvtoKonsalt, a Russian enterprise that Der Spiegel states is owned by Wolf himself.

Though Wolf claimed that he has a “fundamental arrangement with the top rated management of Volkswagen” relating to the proposed offer to revive Russia’s automotive sector, this assertion is now termed into question. Volkswagen’s board of administrators, talking to Der Spiegel, stated that they experienced “no expertise whatsoever” of the letter or “its irritating contents”.

While PromAvtoKonsalt was one particular of the potential buyers for Volkswagen units in Russia, the organization clarified that no commitments were being designed to specific fascinated functions ahead of the sale system was accomplished. Subsequently, Volkswagen introduced that the Russian seller team Avilon Automotive had “met the previously described standards as most effective as possible”. Nevertheless, the alleged interference by a member of the supervisory board of the business that owns Volkswagen in its Russian dealings is relating to for all functions concerned.

Much more: Russian Court docket Freezes VW Belongings, Throwing Highway Block In Automaker’s Escape Route

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In the previous couple months, Volkswagen has encountered legal issues in Russia. GAZ, a company that had contracts with Volkswagen to manufacture new autos in Russia prior to the sanctions, has sued Volkswagen two times since March when the conclusion not to market to PromAvtoKonsalt was designed. These legal disputes have experienced key repercussions, including the freezing of Volkswagen’s Russian assets and the possible jeopardy of its deal with Avilon Automotive.

Der Spiegel also reviews that there have been allegations of collaboration in between Schaeffler, an automotive provider on whose board Wolf also sits, and GAZ since March to prepare for auto manufacturing. Even so, Schaeffler has denied these claims.

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