The German automaker Volkswagen has reported its financial results for the first half of 2023. The company suffered the greatest loss from the cessation of car production in Russia. Losses amounted to 400 million euros.
The German newspaper Berliner Zeitung believes that the company’s real losses are greater, since the total amount of the transaction is 4 times less than the estimated value of the company’s assets in Russia.
In mid-May, it became known that the Volkswagen concern was close to completing a deal to sell its factory in Kaluga. However, the price and details of the deal were “so far only speculation.” Now, in a business report, the company confirmed that the deal amounted to only 125 million euros.
The German newspaper states that the terms of the deal “comply with the early requirements of the Russian government”, which set a maximum bar of 125 million euros for all the group’s assets in Russia. Under the terms of the deal, the new owner will receive not only the plant in Kaluga, but also organizational structures for the import and after-sales service of such brands as Volkswagen, Audi, Skoda, Bentley, Lamborghini and Ducati. In addition, the buyer will receive warehouse space and leasing, insurance and lending companies owned by the German auto giant.
The transaction was completed on May 18, 2023, and Art-Finance, founded in February of this year, became the new owner of all the property of the Volkswagen subsidiary in Russia. The German newspaper Berliner Zeitung, referring to the business report of the automaker, specifies that the new company will be supported by the Avilon group, which has been selling Volkswagen cars for many years.
According to this report, the company will incur a loss from the sale of Russian assets in the amount of €400 million in 2023. The company lost €300 million on the difference in exchange rates and the difficulty of withdrawing financial assets from Russia alone. The company did not announce other losses related to the armed conflict in Ukraine.
The German newspaper Berliner Zeitung, however, believes that the real financial damage to the company may be even greater, since the value of the property sold is much more than €125 million. The newspaper recalls that in March, when Volkswagen property was seized by a Russian court, a company representative estimated it is €525 million. That is, “four times more than the amount for which they were actually sold by decision of the Russian government,” the newspaper concludes.
Despite such significant losses, Volkswagen is positive about the results of the first half of the year and focuses on “increased sales in Europe and North America,” writes the Berliner Zeitung.
2023-07-30 15:09:53
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