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Russian auto boomtown grinds to halt over Ukraine sanctions

Thousands of auto workers have been furloughed and food prices are soaring as Western sanctions pummel the small Russian city of Kaluga and its flagship foreign carmakers, with more sanctions likely to come. The Kaluga region, 190 kilometers (120 miles) southwest of Moscow, says it has attracted more than 1.3 trillion roubles ($15 billion) in investment, mostly foreign, since 2006. But Western sanctions imposed in recent weeks after Russia sent tens of thousands of troops into Ukraine have exacerbated lingering component shortages and halted production at two flagship car plants, Germany's Volkswagen and Sweden's Volvo. A third, the PSMA Rus plant that is a joint venture between Stellantis and Mitsubishi and employs 2,000, may halt production soon due to a lack of parts, Stellantis' chief executive said last Thursday. "It is not clear what will happen. They don't give us any concrete information," said Pavel Terpugov, a welder at the PSMA Rus plant. Terpugov said he needs twice as much money to buy groceries than before the sanctions. Analysts have forecast Russian inflation could soar to 24% this year, while the economy may shrink to 2009 levels. The United States and Europe are weighing more sanctions against Russia after Ukraine accused Russian forces of civilian killings in northern Ukraine, where a mass grave was found in Bucha, outside Kyiv. Russia calls its actions in Ukraine a "special operation" and the Kremlin categorically denied any accusations related to the murder of civilians, including in Bucha. One source of hope for some in Kaluga, with its 325,000 residents, is the West may be reluctant to hurt its own companies. "Does it make sense to impose sanctions on its own plant and lose money?" said Valery Uglov, an auto mechanic at the Volkswagen plant. "Does it make sense to lose the Russian market?" "We hope to return to work as soon as possible and everyone will have confidence in the future again," Uglov said. Volkswagen, whose factory employs 4,200 people, in early March suspended operations. A spokeswoman said production remained frozen. Volvo Group, which employs over 600 people to build trucks, also suspended production. Even before the sanctions, Russian car sales had contracted from 2.8 million units from when the Volkswagen factory opened in 2007 to 1.67 million units last year, damaged by both sanctions after the 2014 annexation of Crimea and the COVID-19 pandemic.

VW teams up with legendary electronic musicians Kraftwerk for 3D Autobahn concert

Electronic music fans know Kraftwerk. To paraphrase a famous TV anchor, they're kind of a big deal. The band is in the midst of an eight-concert show at Berlin's Neue Nationalgalerie, which includes a full 3D accompaniment. Why, you ask, is this on Autoblog, then? Well, Volkswagen is sponsoring it, highlighting the role that its iconic Beetle played on the band's equally iconic fourth album, Autobahn. And besides, it's Friday afternoon, and who doesn't want to listen to the soothing synth notes of early EDM pioneers? Check out the featurette on the connection between VW and Kraftwerk, and then for giggles, scroll down and give the first track of Autobahn a listen. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. News Source: Volkswagen Group via YouTube Volkswagen Coupe Classics Videos

VW recalls another 6,700 vehicles over fuel leak [UPDATE]

UPDATE: An earlier version of this post suggested that the expanded recall involved an additional 44,658 units, when VW tells us that is in fact the total number - adding a further 6,679 to the original recall of 37,979. The text below has been updated accordingly, with our apologies for the confusion. It was a little over a month ago that Volkswagen issued a recall for some 38,000 vehicles over a potential fuel leak. Now the German automaker and the National Highway Traffic Safety Administration have expanded that recall, affecting even more vehicles for the same issue. The problem revolves around a sealing cap at the fuel rail, which could fail and cause fuel to leak into the engine compartment, thereby increasing the risk of a fire. This time around, VW is calling in a selection of Jettas, Passats, Golfs, GTIs, Beetles and Beetle Convertibles, all of them from the 2014 and 2015 model years (except the Golf and GTI, of which only 2015 models are being recalled). The recall now affects an estimated additional 6,679 units, which (in addition to the 37,979 recalled previously) brings the total up to 44,658 vehicles across the United States. RECALL Subject : Fuel Leaking Into Engine Compartment Report Receipt Date: JAN 23, 2015 NHTSA Campaign Number: 15V028000 Component(s): FUEL SYSTEM, GASOLINE Potential Number of Units Affected: 44,658 Manufacturer: Volkswagen Group of America, Inc. SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2014-2015 Jetta vehicles manufactured March 28, 2014, to November 24, 2014, 2014-2015 Passat vehicles manufactured April 7, 2014, to November 18, 2014, 2015 Golf and GTI vehicles manufactured July 1, 2014, to November 20, 2014, and 2014-2015 Beetle and Beetle Convertible vehicles manufactured March 31, 2014, to November 27, 2014. A sealing cap at the fuel rail may fail, allowing fuel to leak into the engine compartment. CONSEQUENCE: A fuel leak, in the presence of an ignition source, can result in a vehicle fire. REMEDY: Volkswagen will notify owners, and dealers will replace the fuel rails with new parts, free of charge. The recall is expected to begin in early February 2015. Owners may contact Volkswagen customer service at 1-800-822-8987. Volkswagen's number for this recall is 24BL. Note: This recall expands and supersedes recall 14V-809 (Volkswagen recall number 24Bi) and only affects vehicles not previously repaired under that campaign.