Wednesday, February 28

Volkswagen Sued for Tens of Millions by Former Partner

The Russian car manufacturer has sued car group Volkswagen (VW) and former partner GAZ, the Interfax news agency wrote on Monday.

GAZ is demanding compensation of 15.6 billion rubles, the equivalent of almost 190 million euros, through the court in the Russian city of Nizhny Novgorod and has already had the court seize VW’s Russian assets. The German company terminated the contract with the car maker after Russia invaded Ukraine last year.

Until last year, GAZ built several models of VW and Skoda at the factory in Nizhny Novgorod. The company is owned by oligarch Oleg Deripaska, a businessman with close ties to Russian President Putin and against whom sanctions have been imposed.

The German car group, which also includes brands such as Seat, Audi and Porsche, is negotiating the sale of the Russian branch. VW sold significantly fewer vehicles last year due to chip shortages in production. As a result, sales figures were at their lowest level in eleven years. Approximately 8.3 million cars were delivered, 7 percent less than a year earlier.

Bloomberg has asked Volkswagen for a response, but the car group has not responded.

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