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The Russian representative office of Volkswagen decided to close production in Nizhny Novgorod, where, before the war, cars of the German automaker were assembled at the facilities of the GAZ group. This is reported Interfax with reference to the company’s statement.
Given the overall high level of uncertainty and the impossibility of predicting a potential resumption of production in Nizhny Novgorod, Volkswagen Group Rus has taken the decision to begin the official closing process of its own office in Nizhny Novgorod on 5 July.
Since the beginning of June, the Russian representative office of Volkswagen said, “a program of voluntary termination of employment contracts for employees was launched,” and most employees agreed to its terms. The closing process will affect “approximately 60 people,” the company said.
The closure procedure is fully consistent with Russian labor legislation, all the rights of employees will be respected, the company stressed.
In early June, Kommersant wrote that Volkswagen offered 200 contract assembly workers based on the GAZ group in Nizhny Novgorod to voluntarily resign. The union told the publication that workers who terminated the contract before June 17 were offered six salaries, and those who voluntarily resign from June 17 to 29 were offered five.
The Volkswagen assembly site in Nizhny Novgorod has been idle since March 3. US sanctions apply to the GAZ group, which was one of the reasons for stopping the assembly.
Volkswagen, like many other foreign automakers, stopped deliveries of cars to Russian dealers in early March amid the war in Ukraine. Volkswagen still has a plant in Kaluga – before the war, it was the concern’s main production site in Russia.
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