VW Will Pay Employees At Russian Factory To Quit


The Volkswagen Group has offered to pay employees from its Nizhny Novgorod, Russia factory if they quit.

The car manufacturer produces the Taos at the site, as well as the Skoda Octavia, Karoq, and Kodiaq. Following Russia’s invasion of Ukraine in late February, VW said production at the Nizhny Novgorod site and its Kaluga plant would be suspended until further notice and that vehicle exports to Russia would also be halted with immediate effect.

Volkswagen does not actually own the Nizhny Novgorod plant where the Skoda Octavia, Karoq, and Kodiaq are built and instead has a contractual agreement with GAZ Group to assemble its models at the site, Auto News notes.

Read Also: Volkswagen Says It Will Build 800,000 Electric Vehicles This Year

A spokesperson from the German car manufacturer recently announced that approximately 200 eligible employees have been offered financial compensation worth six months’ salary, plus medical insurance until the end of 2022, should they agree to stop working at the factory.

A number of other major companies have been forced to overhaul of sell their businesses in Russia due to the ongoing invasion of Ukraine. In May, the Renault Group signed an agreement to sell 100 per cent of its stake in Renault Russia to the city of Moscow. It is also selling its 67.69 per cent stake in AvtoVAZ to NAMI, Russia’s Central Research and Development Automobile and Engine Institute. Importantly, the agreement does permit Renault to buy back its stake “at certain times during the next six years” should it decide that it wants to return to the Russian market.


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