Volkswagen Group Rus says it supports efforts by Moscow to provide financial incentives to the automotive sector and particularly backs any efforts for the supplier sector.

Russia is to pump RUB50bn (US$735m) into the automotive industry, mainly through an aim to reduce Russia's car parc age, while lower vehicle credit and rental rates programmes will remain.

Russian companies will also receive financial support on their investment credits, with the State allocating funds to regional authorities.

Volkswagen Rus is collaborating with more than 60 suppliers and is now increasing its work with domestic component manufacturers, such as steelmakers.

"We as Volkswagen support that the Russian government should support the industry and especially the automotive supply industry to be able to export," said VW Group Rus procurement director, Patrick Husemann at the Russian Automotive Forum organised by Adam Smith Conferences in Moscow.

"This is something really missing in Russian industry to be able to export. As we see it there is a cost advantage – there must be cost advantages in the value chain.

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"If it is [a] way to increase the utilisation rate by increasing exports, then it is good for us, good for everyone."

For his part though, Ford Sollers VP purchasing, Rob Harrison told just-auto the automotive sector could not "simply look to the Russian government to solve the ills" and should evaluate its own cost structure first.

If the Russian government can help then great, but that should not be the basis of the automotive competitive industry," said Harrison. "We have to control our own cost first."

At the same conference, AvtoVAZ-Renault-Nissan purchasing organisation deputy regional purchasing head, Erik Barenthein noted: "Government support is critical to help us get off the ground."

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