Fire Engulfs Former Volkswagen Factory, Which Now Makes Chinese Brand, South Of Moscow

Fire crews extinguished a fire that broke out early Wednesday at the former Volkswagen plant in Russia’s Kaluga region, now repurposed as part of Moscow’s post-sanctions auto ecosystem.

There’s been little in the way of a cause mentioned in international reports, amid an investigation, though skeptical headline consumers will note there’s been a tit-for-tat covert sabotage campaign long underway between Russia and Ukraine-Europe in the context of the war, now about to enter its fifth year.

According to Russia’s Emergency Situations Ministry, the blaze erupted at a foam recycling workshop inside the Tenet automobile facility, which currently assembles Chinese-made vehicles, and no casualties were reported.

It remains that automaking is an industry prone to accidents and fires, for which typically there are sophisticated and high-tech fire alarm systems at the ready.

It’s likely to result in a temporary shutdown of operations. The sprawling plant is a symbol of Russia’s pivot away from Western manufacturers, amid the US-EU sanctions campaign, and efforts to isolate the Russian economy globally.

Tenet executives recently unveiled plans to seize at least 10% of Russia’s projected 1.4-million-vehicle market, also at a moment most Western automakers are completely absent from Russia, as international firms made an exit over the several years of Putin’s ‘special military operation’ in Ukraine.

Chinese firms have sought to fill the vacuum, amid several bilateral deals between Moscow and Beijing, longtime ‘frenemies’ which are improving relations as both have come under Washington’s punitive actions.

According to an early 2025 report:

The ex-Volkswagen auto-manufacturing plant at Kaluga is launching auto manufacturing of cars under Russia’s Tenet brand, according to regional governor Vladislav Shapsha. Volkswagen exited the Russian market in 2023, selling the business to their Russian dealership, Avilon, who paid an estimated US$135 million for VW’s Russian business. Volkswagen reportedly invested more than US$800 million to build the Kaluga plant.

Avilon subsidiary AGR Holding LLC and China’s Defetoo, have signed a joint venture technological partnership to manufacture Tenet branded cars. Defetoo are part of China’s Chery auto manufacturer. The Tenet vehicles will be reworked, Russian versions of the Chinese brand. 

Ukrainian and Russian social media have featured images of what’s clearly a large inferno, but Western headlines have been slow to pick up on the emergency:

A large fire is ongoing at the former Volkswagen plant in Russia’s Kaluga region.

The plant currently assembles Chinese Chery models locally and markets them under the Tenet label. pic.twitter.com/8SzzZEi8TE

— Special Kherson Cat (@bayraktar_1love) January 28, 2026

In cases of industrial or military site fires or explosions inside Russia, Kremlin authorities are not always quick to blame Ukraine or the West – given they have an interest in showing the domestic populace that the state and its security are firmly in control of the situation. Still, a lot of incidents have been happening of late, sometimes as a result of Ukrainian long-range drones.

Meanwhile in Ukraine, civilian as well as military infrastructure continues to get hammered, resulting in tragedies…

A Ukrainian soldier pulls a baby to safety from a train in Kharkiv after Russian suicide drones hit it, killing 3 people.

Source: @visegrad24 pic.twitter.com/1SEZSbX2St

— Mario Nawfal (@MarioNawfal) January 28, 2026