VW completes sale of factory in Russia

STORY: Volkswagen has completed the sale of a major production plant in Russia.

The German automaker said Friday (May 19) it had sold its Kaluga facility, which is south of Moscow.

The buyer is investment firm Art-Finance, which is backed by Russian car dealer Avilon.

It ends months of negotiations with Russian authorities over the deal.

The sale includes VW's production facilities in Kaluga, and the importer structure of distribution and after-sales business.

It also includes its warehousing and financial services activities with all its employees.

The group did not give details on the price, but a source told Reuters the deal was valued at $138 million.

Work at the plant has been furloughed since March last year.

VW stopped production due to Russia's invasion of Ukraine.

The Kaluga plant has a production capacity of 225,000 vehicles per year, and more than 4,000 employees.