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.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

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.

See Also:

"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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"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."