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Mladá Boleslav / Nizhny Novgorod, June 14th, 2011 – Today, the Volkswagen Group Russia and the Russian automobile manufacturer GAZ Group have signed the contract for the annual production of 110,000 vehicles for the ŠKODA and Volkswagen brands. As the first vehicle, the ŠKODA Yeti is scheduled to roll off the assembly line at the plant in Nizhny Novgorod at the end of 2012. It will be followed by the Octavia as well as the new Volkswagen Jetta. The German- Russian agreement will initially run through the year 2019.

The chairman of the board of ŠKODA, Prof. Dr. h.c. Winfried Vahland, underlines the strategic importance of the cooperation for ŠKODA: "The Russian market is among our most important sales markets. And its significance will continue to increase. The partnership with GAZ is a prerequisite for ŠKODA to be able to successfully continue its growth course in this country. ŠKODA will move even closer to the Russian market and the Russian customer."

Besides China and India, the Russian market is the most important pillar of ŠKODA's growth strategy. The manufacturer is currently racing from one sales record to the next in the country. With 6,100 sold vehicles sold in May, ŠKODA achieved its best sales record ever in Russia and the third best sales month in a row. In total, ŠKODA was able to sell more than 25,500 cars in the first five months of the year (a plus of 63.4 percent) in Russia.

The production of the ŠKODA and Volkswagen models will take place on the assembly line for passenger cars of GAZ, which will be used exclusively for the Volkswagen Group Russia. Furthermore, a new car body construction unit will be established at the plant. Corresponding processes and training will assure the observance of all Volkswagen quality standards.

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