1. ENGLISH
  2. Group
  3. FAQs Ukraine

We use cookies to enable you to make the best possible use of our website and to improve our communications with you. We take your preferences into regard and process data for analytics and personalization only if you give us your consent by clicking on "Agree and continue" or if you make a specific selection by clicking on "Set cookie preferences". You can revoke your consent at any time with effect for the future. Information on the individual cookies used and the possibility of revocation can be found in our privacy policy and in the cookie policy.

Agree and continue Set cookie preferences

FAQs Ukraine

What does Volkswagen say about the current developments in the Ukraine crisis?
We are greatly concerned and dismayed at the daily news about the war in Ukraine and continue to hope for a cessation of hostilities and a return to diplomacy. We are convinced that there can only be a lasting solution to the conflict on the basis of international law.

In view of Russia’s attack on Ukraine and the consequences of that, the Group Board of Management decided at the beginning of March to stop producing vehicles in Russia until further notice. This decision applies to the Russian production sites at Kaluga and Nizhny Novgorod.

The export of vehicles to Russia was also halted.

We have taken the decision to largely suspend business activities in Russia as a consequence of the current overall situation and the great uncertainty and upheavals it means. The Russian authorities have been notified of the decision and know about the matter. In addition, we are keeping a close eye on further developments and the overall situation.

The Group Board of Management takes its responsibility towards the affected employees at Volkswagen Group RUS very seriously. The affected employees will continue to be paid a reasonable portion of their wages and the costs of that will be borne by Volkswagen.

What impact does Volkswagen believe a lengthy conflict will have on the European economy?
The Volkswagen Group fears that the conflict between Ukraine and Russia will have a serious impact on the whole European economy.

A further, long-term interruption to global supply chains could result in, among other things, considerable price increases, an energy shortage and an increase in inflation and thus have massive negative effects for European and in particular German companies.

Europe is dependent on imports of raw materials and so there might be long-term bottlenecks that would additionally hit the European economy. Sanctions and counter-sanctions impact Russia and Europe. The USA and China remain largely unaffected.

That is why the Volkswagen Group advocates a united, strong stance by the international community.

Volkswagen is fully implementing the sanctions that have been imposed.

The objective must be to achieve an end to the armed conflict in Ukraine, and in particular stop the suffering of the people in Ukraine, as soon as possible by means of negotiations between the parties on an equal footing.

Will Volkswagen provide help for the refugees?
The company itself has been actively involved in providing humanitarian aid: As a first step, the Board of Management has already granted one million euros in emergency aid to the UNO-Flüchtlingshilfe, the German partner agency to the United Nations High Commissioner for Refugees (UNHCR).

Moreover, Porsche and Audi have each provided one million euros in emergency aid, while ŠKODA and other companies have donated almost half a million euros.

But this emergency aid of around 3.6 million euros by our Group for those affected by the war was just the beginning; in the meantime, the amount has risen to around 5.5 million euros. We and the Group Works Council called on the workforce to make donations. As things stand now (April 4), our workforce has donated more than half a million euros and the campaigns are still ongoing.

Employees in Germany, and especially in Poland, the Czech Republic and Slovakia, have also initiated numerous private aid projects.

The Volkswagen Group and all its brands are also supporting relief organizations with cars & other mobility solutions to transport refugees and relief supplies. We are currently examining how we can intensify our support further in our core business of mobility.

What is your response to the Russian government’s announcement to nationalize the Volkswagen Group’s plants and assets in Russia and put them under external administration?
The Volkswagen Group is following the discussions about expropriation with concern. Volkswagen is suspending the production of vehicles in and export of them to Russia until further notice. The reasons for that include a lack of or severely limited availability of parts from suppliers and logistical challenges as a result of the hostilities. Our employees in Russia remain employed by us, and their wages will continue to be paid while our business is suspended. The costs of that will be borne fully by VGR.

Are you continuing to supply spare parts for repairing customers' vehicles in Russia?
Within the scope of the restrictions imposed under the EU sanctions, we are supplying spare parts and meeting our service and warranty obligations. Incidentally, technical support for these parts and components is also affected by these sanctions.Like other companies in the region, we also face an exceptional situation: missing or greatly restricted availability of parts from suppliers and logistical challenges that have arisen as a result of the hostilities.

In which German Volkswagen plants are there currently production stoppages due to the war in Ukraine? From when to when will production be stopped and what vehicle models are affected?
The Volkswagen Group has a global network of more than 40,000 suppliers, including some in Western Ukraine. The supply chain is already being adversely affected due to the current situation in this region. That may result in adaptations to production at individual locations of the Group.

The degree to which our business activities are impacted is continuously ascertained by experts in a Group-wide task force. We will have to proceed cautiously in the coming days and weeks and constantly assess the situation.

The supply chains of a number of German and also European plants have already been affected. The individual brands and locations can provide information on the latest situation at the individual Group locations that are affected.

Vehicle production outside Europe, in particular in North and South America and in Asia, is not impacted at present.

In particular, we obtain wiring harnesses for vehicles’ electrical systems, but also numerous switches in the interior, from suppliers in Ukraine.

There might also be problems in the logistics chain due to a loss of haulage capacities and, for example, long waits at border crossings. Vehicle and component deliveries by rail and truck along the usual routes have been interrupted. Transportation of them by ship is very difficult because many shipping companies refuse to call at Russian ports. At the same time, freight charges and insurance premiums are soaring.

What action has the Volkswagen Group taken to cushion the loss of deliveries from Ukraine?
As soon as the war broke out, the Group Board of Management established a crisis team that analyzes the impact on our work on a daily basis. The task force has already reduced production stoppages and secured production. Nevertheless, there will be further production stoppages.

The “Ukraine Supply Task Force” did a great job in its very first week:

  • > 10 top suppliers sent 80 employees to Wolfsburg to work on solutions together with our procurement teams (>100 Volkswagen employees).
  • Other locations in Eastern Europe, North Africa and also overseas are already stepping into the breach at short notice to compensate for the losses.
  • What we have built up over the past months with the Group’s procurement strategy NORTH STAR is paying off in this crisis: genuine partnership between suppliers and the Group. Aided by this strategic approach based on trust and cooperation, Group Procurement will also overcome the current crisis.

Will components supplied previously from Ukraine be produced elsewhere and will Ukraine lose production of them for good?
The Volkswagen Group stands by its suppliers in Ukraine and, as befits a partner, is doing all it can to help the local companies.

However, we are also examining together with our partners where alternative production can be quickly established so as to ensure that the components in question are supplied. That may ultimately mean we create surplus capacities if the war is over soon – but that is better than a shortage of parts.

What is the personnel situation like at your Russian plant?
In all activities on site, the safety and well-being of our employees has top priority. The degree to which our business activities are impacted in the affected countries is continuously ascertained by a crisis team.

Given that some European governments (such as the Czech Republic) have advised their citizens to leave Russia, foreign employees currently working in Russia and wishing to leave the country will be given support to do so and the company will ensure they are provided with ways of leaving.

The Group Board of Management takes its responsibility towards the affected employees at Volkswagen Group Rus very seriously. The affected employees will continue to be paid a reasonable portion of their wages and the costs of that will be borne by Volkswagen.

How many employees in Germany are affected by the production stoppages?
It is not possible to put a precise figure on that, since short-time working is not only caused by the Ukraine conflict, but also by other factors such as the continuing shortage of semiconductors.

Will these employees still receive their wages or have you applied for short-time working?
In order to be able to react flexibly at individual German locations if necessary, we are making use of the legal basis for using short-time work. Volkswagen will continue to top up the short-time work allowance for the employees concerned.

What parts of the company belong to Volkswagen Group Rus?
VOLKSWAGEN Group Rus LLC is home to the Russian activities of seven brands in the Volkswagen Group: Volkswagen Passenger Cars, Volkswagen Commercial Vehicles, ŠKODA, Audi, Lamborghini, Bentley and Ducati.

How many vehicles were sold and produced in 2021?
The Volkswagen Group sold around 199,000 vehicles in the Russian market in 2021. Around 170,000 vehicles were made at the company’s production sites in 2021: 118,000 units at the Kaluga plant and 52,000 at the Nizhny Novgorod plant (contract manufacturing on behalf of VW Group Rus). The total market share in 2021 was 11.9%. 11,500 vehicles were exported to CIS countries.

In addition, around 96,000 engines were produced at the company’s own plant in Kaluga in 2021, of which 7,800 were exported to production sites all over the world, including Poland, Spain and India.

Further informations regarding VW Group Russia you can find on the Skoda Website through the following link: https://www.skoda-storyboard.com/en/press-releases/faq-russia-ukraine/

Contact

Nicolai Laude

Director Litigation Communications, Issue & Incident Communications
Volkswagen Group Communications

+49 (0) 5361 / 9-25097

nicolai.laude@volkswagen.de

 

Andreas Meurer

Litigation Communications, Issue & Incident Communications
Volkswagen Group Communications

+49 (0) 5361 / 9-961398

andreas.meurer@volkswagen.de

Important note

When you access this link, you leave the pages of Volkswagen AG. Volkswagen AG does not claim ownership of third-party websites accessible via links and is not responsible for their content. Volkswagen has no influence on the data that is collected, stored or processed on this site. You can find more detailed information on this in the data protection declaration of the provider of the external website.

Continue to page Cancel