Volkswagen picks Kaluga for Russia assembly plant


FRANKFURT, May 26 (Reuters) - Volkswagen has selected the Kaluga area 160 km southwest of Moscow as the site to erect a plant that can assemble up to 115,000 vehicles a year, Europe's biggest carmaker said on Friday. The plant will begin to assemble Volkswagen and Skoda models in the second half of 2007, it said in a statement. Initial output will be around 20,000 cars per year. Full production will start in the first half of 2009.

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