Volkswagen is being sued for )48 million by Russian GAZ

According to foreign media reports, court records show that Gorky Automobile Plant, a subsidiary of GAZ Group in Russia, filed a lawsuit with the Nizhny Novgorod Regional Court on April 7th, demanding to recover 28.4 billion rubles ()48 million) from Volkswagen. The specific details of this lawsuit have not been released yet, and Volkswagen declined to comment.

Image source: Volkswagen

It is reported that GAZ Group has assembled cars for Volkswagen. In March 2022, Volkswagen ceased operations in Russia and suspended production at its factories in Kaluga and Nizhny Novgorod until further notice. In the summer of 2022, Volkswagen decided to close its factory in Nizhny Novgorod.

In March of this year, GAZ Group stated that Volkswagen's attempt to exit the Russian market posed a threat to GAZ's interests, and GAZ is seeking damages of 15.6 billion rubles for Volkswagen's termination of the contract. On March 17th, a Russian court froze Volkswagen's assets in Russia, but the freeze was lifted on April 3rd.

Volkswagen plans to sell its assets in Russia, including the Kaluga car factory with an annual production capacity of 225000 vehicles, but Volkswagen has not yet made a decision on the sale. Volkswagen stated that it is applying for a sales license from Russian government agencies.