Volkswagen may start assembling Audi models at its new Russian plant in Kaluga this year, Russian media  said on Friday.

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A final decision on the issue has not been made yet, reports citing Dietmar Korzekwa, general director of the Russian subsidiary Volkswagen Group Rus, said.


The plant currently assembles Volkswagen and Skoda cars.


A separate report on just-auto today said VW would start selling Kaluga-built Golfs next month for about 6% less than imported models. Locally-built cars will cost 592,100 to 661,300 rubles (US$18,400-$20,500). The Passat CC and other models would be added to the Russian production lines later this year.


An industrial assembly agreement signed with the Russian government allows Volkswagen to produce Audi cars at the plant, Korzekwa told Russian media.

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He said the carmaker was not yet producing Audis at the factory because the brand has a wide range of vehicle models and sales of each line were not high enough to justify production in Russia, RBC daily reported. Industrial assembly agreements substantially reduce import duties on foreign vehicle components.


Volkswagen also plans to start producing its Multivan vehicle models at the plant this year, the reports said. Localisation of production is expected to reduce the retail cost to consumers, the carmaker said on Thursday.


Volkswagen’s Russian plant can build 150,000 cars a year and made 62,000 in 2008.


Volkswagen plans to invest EUR174m in the plant by 2011, thus increasing the total amount of investments in the plant to EUR774m, RBC daily reported.