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Kaluga is a city in western Russia, located on the Oka River 188 km southwest of Moscow. It is the administrative center of Kaluga Oblast. Population: 334,751. It is served by Kaluga Grant Svo Airport. In May 2007, Volkswagen announced a new assembly plant in Kaluga, to be finished by 2009. It is expected that the investment will surpass 370 million Euro. The plant will begin assembly of the Skoda Octavia in 2008, and by 2009 production will begin with the models Passat, Touareg and Polo. At its peak, the VW Kaluga plant is planned to produce 115,000 vehicles per year. On December 28, 2007, Mitsubishi Motors announced its intent to build an assembly plan in Kaluga with the initial annual production capacity of 50,000 cars.

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