Volkswagen plans to assemble vehicles at the facilities of Russian auto producer GAZ Group, Martin Winterkorn, chairman of Volkswagen’s board of directors, said.

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Yelena Matveyeva, deputy CEO of GAZ Group, confirmed that the companies were in talks on the issue.

Winterkorn also said that Volkswagen planned to sell 360,000 vehicles per year in Russia by 2017–2018. He added VW was also considering expanding its plant in the Russian city of Kaluga.

The annual capacity of the plant presently is 150,000 vehicles.

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