Volkswagen AG expects to get formal approval next week to build a factory in Russia.
Company CEO Bernd Pischetsrieder says the "full-size factory" will have a capacity of between 250,000 and 300,000 vehicles within five years. The plant will build cars for the Russian market and for export, Pischetsrieder said at a Detroit auto show event.
If approved by VW's supervisory board, the plant would begin production this year.
According to reports, the factory initially will produce the Skoda Octavia and a European version of the four-door Go, which now is sold in Argentina, China and eastern Europe.