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Volkswagen to supply Russia's GAZ with engines
June 16, 2017 / 8:30 AM / in a month

Volkswagen to supply Russia's GAZ with engines

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A Volkswagen logo is pictured at the newly opened Volkswagen factory in Wrzesnia, Poland, September 9, 2016.Kacper Pempel/File Photo

FRANKFURT (Reuters) - Volkswagen (VOWG_p.DE) has signed a deal to supply engines to GAZ group (GAZA.MM), securing jobs at its Salzgitter engine plant and adding to further projects in Russia announced on Thursday.

VW will deliver a total of 200,000 engines to Russia over a period of five years, the German carmaker said on Friday.

It said the contract would safeguard more than 50 jobs at the Salzgitter plant, which is starting to supply customers outside the group with engines as part of a corporate overhaul.

Volkswagen had said on Thursday it had extended a deal with GAZ to assemble VW brand and Skoda cars until 2025 and to supply 2.0 litre diesel engines to light commercial vehicles made by the Russian group.

Reporting by Maria Sheahan

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