2023-03-20 06:48:45 ET
Volkswagen ( OTCPK:VWAGY ) assets in Russia were frozen on Monday according to court documents seen by Reuters .
Russian manufacturer GAZ had sued the German carmaker for breach of contract due to its pullout from the market in August 2022. The lawsuit alleged over $200M in losses stemming from the severed relationship.
Volkswagen is still attempting to offload its Russian assets, including those related to Skoda and a factory just south of Moscow. The Moscow area plant has not operated since March 2022.
Elsewhere, Martin Jahn, a member of the board for Volkswagen’s Czech subsidiary Škoda Auto lamented the potential impact of the Euro 7 emission standards in a Sunday interview with Czech presenter Václav Moravec. He indicated that the automaker would need to lay off as many as 3,000 employees and potentially close a plant if standards are approved as written.
Read more on Škoda’s planned sales of Russian assets.
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Volkswagen’s Russian assets reportedly frozen in court decision