Due to falling real wages and a weakening rouble, Volkswagen plans to reduce production at its plant in Kaluga.

Reuters, citing Automobilwoche, said the company had planned earlier to assemble 150,000 vehicles at the plant this year but has reduced the target to 120,000 vehicles and, from today, (8 September, shut down the plant for 10 days.

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The Kaluga plant builds the Skoda Fabia and Octavia plus the Volkswagen Polo and Tiguan.

It began as an SKD kit operation but gradually moved throught CKD to full manufacture.

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