Revs Up Auto Race to Russia

by Wall Street Journal

Amid weak demand in their home markets, Western car makers are flocking to build cars in Russia. The latest entrant: Germany's Volkswagen AG.

Europe's largest auto maker by sales opened its first factory in Russia yesterday and outlined an ambitious strategy to catch up with rival Toyota Motor Corp. by more than tripling its sales in Russia and boosting its share of the Russian car market to 10% by 2010 from 3.2% now.

It is the latest sign of how the rising prosperity of the so-called BRIC countries -- Brazil, Russia, India and China -- is luring auto makers farther ...