Volkswagen Group Russia has started building group brand Skoda's Kodiaq SUV at its GAZ Group plant in Nizhny Novgorod.
The Russian specification includes a choice of infotainment systems and numerous driver assistance features.
Go deeper with GlobalData
The automaker said the new locally made product would strengthen the Skoda brand in Russia by offering buyers competitive pricing and the ability to quickly adapt to changes in the market and the needs of Russian customers compared with fully imported models.
"The production launch of the Kodiaq at the Nizhny Novgorod plant is an important step in the implementation of the brand's long term development strategy in Russia," said Skoda production and logistics head Michael Oeljeklaus.
"The majority of our sales in Russia are locally-produced models. Local production has such undeniable advantages as reduced vehicle delivery time and the opportunities for a rapid increase in production volumes."
VW Group Russia chief Marcus Osegowitsch added: "The launch of Kodiaq local production in Russia is a big event for us; it demonstrates the effectiveness of the partnership between [us] and GAZ Group. Investment in Kodiaq production and specialised staff training reaffirmed our intention to implement the group's long term strategy for Russia – and it is yet another contribution in the development of the Russian industry."
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.
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 GlobalDataManfred Eibeck, CEO of Russian Machines, said: "We are proud our partner has chosen the GAZ production facility for production of one more model in addition to the range we are already manufacturing. This increases capacity utilisation and provides additional training for the Gorky Automobile Plant workers. Meeting all quality standards, all technological requirements is the key priority for us in the projects that we are implementing jointly with [VW] and a basis for further development of our cooperation."
Preparations for the launch took 18 months at a cost of EUR87.5m (US$108.31m). GAZ already builds the VW Jetta plus Skoda's Octavia and Yeti. Workers were trained at Skoda Auto plants in Kvasiny and Mlada Boleslav as well as at the Nizhny Novgorod plant's own training centre ahead of the Kodiaq production launch. Group experts from other countries also helped launch the project.
The Russian Kodiaq is built with 1.4- and 2.0-litre engines delivering 125hp to 180hp. Russians will also be offered a 1.4 TSI engine in combination with both front and 4WD for the first time. Manual and automatic transmissions are available.
Russian production is CKD kit assembly with local content and includes body welding, prime, paint and anticorrosion measures followed by wiring, trim and glazing. Some engines are also assembled locally.
GAZ Group and VW began cooperation in 2011 with a contract for VW and Skoda car assembly at Gorky Automobile Plant. This project required building new assembly and body shops, upgrading the paint shop, modernising the logistics and quality control systems, and organising local component production.
The contract was extended in June 2017.
ANALYSIS – Skoda future models
