German flagship carmakers – Porsche, Volkswagen, and BMW – agreed to extend a helping hand in the set-up of a carmakers’ holding in Russia. They are now in talks with producers of GAZ, KamAZ, and ZIl, says Thomas Jurk, Economy Minister of Sachsen, Germany.
      
      The German corporations are very much interested in and motivated by the Russian market. Sales are growing every year, the country is opening up offering more and more opportunities.
      
      Volkswagen, for example, has decided on a plant in the Kaluga Region, neighbouring the Moscow Region. The company has negotiated a sharp cut of import rates from 25% to 3% and other benefits from the local administration.
      
      Late in 2007 Russians may safely knock on the dealers’ doors for Skoda Octavia, which will be followed by Polo, Passat, Touareg, Skoda, and a groundbreaking model made specially for the Russian market.
      
      At first, it will be the Semi Knocked Down procedure turned into full stage production by 2009 to reach an annual 115,000 cars. Planned injections from Volkswagen total 370m euro. The construction of the much anticipated facilities will start in August 2006.
      
      In the first quarter of 2006, Volkswagen sold 3,846 cars through its official dealers. With the plant in operation, transportation costs will cut the price and boost the sales, something both consumers and experts are confident of.