Volkswagen, Ford Rush to Seal Russian Deals Before Tax-Incentive Deadline

Knowledge Base: Volkswagen Buyer's Guide

February 27, 2011: Bloomberg News reports that Russsia’s government closes the door today to new tax incentives aimed at attracting investments by foreign automakers in a country where car sales may overtake Germany’s within four years.

In the past two weeks, Volkswagen AG and billionaire Oleg Deripaska’s OAO GAZ agreed to produce VW brand and Skoda cars at a Russian factory, while Ford Motor Co. announced an assembly and distribution venture with OAO Sollers. The Ministry of Industry expects as many as six applications from foreign manufacturers and their Russian ventures, Alexey Rakhmanov, head of the ministry’s automotive department, said in an interview.

Read the full article here: Bloomberg News: Car Makers Rush to Seal Russian Deals