Employees work on the assembly line of the Jetta VS7 SUV at the Chengdu branch of FAW-Volkswagen Automobile Co., Ltd, a joint venture between FAW Group and Volkswagen Group.
VCG/VCG via Getty Images
Volkswagen has formally exited the Russian market. However, a report by “Zeit” indicates that vehicles utilizing VW technology are still being sold there through a website.
This specifically pertains to the so-called Jetta models, produced by a joint venture between VW and the Chinese automaker FAW. Notably, FAW seems to be behind the website.
When approached by “Zeit”, Volkswagen’s representative in Germany had no information about the ongoing Jetta operations in Russia or the entity responsible for launching the advertising site.
Despite Volkswagen’s official exit from Russia, it appears that car models featuring VW technology are still on the Russian market. This was reported by “Zeit”. The focus is on the so-called Jetta models (VA3, VS5, and VS7), which are manufactured through a joint venture between Volkswagen and the Chinese car manufacturer FAW. Volkswagen introduced the “Jetta” brand in 2019 as a new offering for the Chinese mass market, utilizing Volkswagen’s engines.
These same Jetta models were recently announced not only through a press release in Russian media, but also promoted by Jetta Motors on a website that launched at the beginning of July. According to “Zeit”, this site included a list of authorized sales partners in Russia, such as car dealerships. The VS7 model, for instance, was advertised as an SUV with “German DNA”. All vehicles are produced by FAW using components from the VW Group.
This raises questions about how it aligns with Volkswagen’s halt in deliveries and withdrawal from Russia. Just in May 2023, the automaker sold its plant in Kaluga, southwest of Moscow, to the financial firm Art Finance for a purchase price of 160 million euros, which was significantly below market value.
VW denies knowledge of Jetta model distribution in Russia
When questioned by “Zeit”, Volkswagen’s representative in Germany had no information regarding the current Jetta operations in Russia or the identity of the advertising site’s creators. A spokesperson reiterated that Volkswagen complies with international laws and regulations. The statement reads: “Neither Volkswagen Group China nor our joint venture companies export vehicles to Russia. Any contrary reports or claims lack foundation and are simply false,” the group asserted. They further stated that they are unaware of how the Jettas from the joint venture with FAW in China are reaching Russia and emphasized their commitment to preventing unauthorized trade.
The website advertising Jetta models links to the Chinese manufacturer FAW
However, “Zeit” has found that the Jetta Motors Russia website is associated with FAW Osteuropa GmbH, registered in Russia. According to the Russian commercial registry, this company is a wholly-owned subsidiary of China FAW Group Import & Export Co and also acts as a division of FAW in China. Essentially, it is the same company that manufactures Jetta models in a joint venture with Volkswagen. Moreover, FAW Osteuropa appears to officially operate as the importer of Jettas to Russia, essentially acting as the Russian branch.
A VW spokesperson was unable to comment on whether VW representatives had spoken with FAW about the situation or if the Chinese partners acted independently without authorization. He redirected inquiries to FAW’s press office, which did not respond to “Zeit”. Shortly after this inquiry, the website for Jetta Motors Russia, launched in July, was taken offline. Nevertheless, the partner dealerships still consider the Jettas to be “in stock.”
Volkswagen’s Controversial Withdrawal from Russia: The Case of Jetta Models
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Employees work on the assembly line of the Jetta VS7 SUV at the Chengdu branch of FAW-Volkswagen Automobile Co., Ltd, a joint venture between FAW Group and Volkswagen Group.
VCG/VCG via Getty Images
Volkswagen has officially withdrawn from Russia. However, research by “Zeit” shows that cars equipped with VW technology were still being marketed there through a particular website.
This situation specifically involves the Jetta models produced by a joint venture between FAW and Volkswagen. Alarmingly, FAW appears to be behind the promotional website.
Volkswagen’s German representative, when questioned by “Zeit”, claimed ignorance regarding the ongoing Jetta business in Russia and the origins of the advertising website.
Despite its withdrawal from the Russian market, Volkswagen finds itself entangled in a situation where their Jetta models (including VA3, VS5, and VS7) remain available for sale. The Jetta brand was launched in 2019 specifically for the Chinese mass market, utilizing Volkswagen’s technology. Though officially out of Russia, these vehicles are still being promoted.
Recent reports indicate that these Jetta models were advertised not only through press releases in Russian media but also on an online platform set up in early July. This site outlined a series of authorized sales partners in Russia, including dealerships. The VS7 model has been marketed as an SUV boasting “German DNA”, with vehicles assembled by FAW using components sourced from the VW Group.
VW Denies Knowledge of Jetta Distribution in Russia
Upon inquiry, Volkswagen’s representatives firmly denied any knowledge of the alleged Jetta business in Russia or the advertising site. They reassured that they abide by international laws and regulations, stating: “Neither the Volkswagen Group nor any subsidiaries export vehicles to Russia. Any contrary claims are baseless and untrue.” They also expressed unawareness regarding how Jettas from their joint manufacturing facility with FAW are reaching the Russian market. The VW Group China claimed to be actively preventing unauthorized trade.
The Website for Jetta Models Links Back to FAW
However, investigations by “Zeit” revealed that the Jetta Motors Russia website was operated by FAW Osteuropa GmbH—a company registered in Russia and noted as a wholly-owned subsidiary of the China FAW Group Import & Export Co. This organization is also linked to the FAW division in China, the same entity responsible for producing Jetta models in collaboration with Volkswagen. Further, it appears that FAW Osteuropa acts as the official Jetta importer in Russia, essentially functioning as a local branch.
Following initial questions from “Zeit”, the Jetta Motors Russia website went offline shortly after its launch in July, although partner dealerships still claimed availability of the vehicles. Inquiries to FAW went unanswered, indicating a potential communication gap between the companies.
Implications for the Automotive Industry
This situation poses serious questions regarding the accountability of automotive giants like Volkswagen when engaging in international markets, especially amidst geopolitical tensions. The continued promotion of Jetta models in Russia raises concerns about ethical operations and adherence to international norms concerning sanctions and trade.
Benefits and Practical Tips for Consumers
For consumers interested in Jetta models, it is essential to remain informed about the ongoing situation concerning international regulations and the legitimacy of vehicle sourcing. Here are a few tips:
- Check Vehicle History: If considering a Jetta, ensure to acquire a detailed vehicle history report to confirm legitimate sourcing.
- Research Sellers: Familiarize yourself with the dealerships and online platforms offering these cars to avoid potential scams.
- Understand Legalities: Keep tabs on the legal environment surrounding vehicle imports and sales, especially in volatile regions.
Case Study: Volkswagen’s International Challenges
Volkswagen has faced multiple challenges in navigating international markets over the years. The withdrawal from Russia, coinciding with economic sanctions and shifting consumer attitudes, exemplifies the complex landscape automotive companies must traverse in today’s global economy.
| Year | Event | Impact |
|---|---|---|
| 2023 | Withdrawal from Russia | Sale of Kaluga plant; ongoing Jetta promotion raises ethical questions |
| 2024 | Continued Jetta advertising in Russia | Confusion about corporate governance and compliance |
