PRESS: Peugeot, Volkswagen ask to delay Russian localization

MOSCOW, Sep 2 (PRIME) -- Volkswagen Group and PSA Peugeot Citroen have asked the Industry and Trade Ministry to prolong the semi knocked down assembly regime in the country, business daily Kommersant reported Wednesday, citing industry sources.

State regulations do not disclose terms and deadlines for car producers to localize manufacturing to receive preferential terms for imports of spare parts and to participate in state support programs, but sources told Kommersant they know that semi knocked down assembly is permitted for only several years.

A source with knowledge of the situation said that Peugeot wants to launch local production of new models but needs large investments. The models which it produces now, Citroen C4 and Peugeot 408 are not in much demand because of the ruble weakening.

Volkswagen’s semi knocked down assembly permit ended in summer 2015, another source said. The company wants to assemble premium Audi cars because it is unprofitable to manufacture them in Russia, he said.

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