VW's Russian unit announced on Feb. 24 that it was doubling its operations by expanding production to a factory owned by the country's largest auto producer, GAZ.
Volkswagen Group Rus said its agreement with Russian billionaire Oleg Deripaska's company will see the unit produce 100,000 Volkswagen and Skoda cars per year at GAZ's main plant in the Volga region city of Nizhny Novgorod.
The German giant's Russian unit currently produces all its vehicles in the western city of Kaluga.
The company did not disclose financial details of the agreement.
Copyright Agence France-Presse, 2011