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International Internet Magazine. Baltic States news & analytics Saturday, 16.01.2021, 17:15

Volkswagen investing hundreds of millions in its Estonian subsidiary

BC, Tallinn, 01.12.2020.Print version
In spring, international car manufacturer Volkswagen established a subsidiary in Estonia, Car.Software Estonia AS, the revenue of which according to the Tax and Customs Board was 237 million euros in the third quarter, this is likely to be an intra-group transfer of assets, the "Aktuaalne kaamera" news program of public ETV television reported, cited LETA/BNS.

The company has only six employees.

According to Statistics Estonia, the amounts of money moving to Estonia may still increase significantly and become so large that they would affect the country's national accounts.

"The information from the commercial register shows that these companies have been established in the spring and summer, now in the third quarter they have already invested a bit, they will continue to invest in the future, it will then be clear how big these volumes will be," Robert Muursepp, leading analyst at Statistics Estonia, told the news program.

Peeter Raudsepp, head of Enterprise Estonia, said the entire investment in the software company amounts to billions of euros, part of which comes to Estonia.

"I can confirm that this is a major investment, it is a long-term investment and it will be a gradual one," Raudsepp said.

According to Volkswagen, the car software company is responsible for developing vehicle software, digital ecosystems and customer-centric functions for dealerships throughout the group.

The Tallinn-based subsidiary manages the Car.Software Organization's product portfolio and intellectual property and provides legal support for all processes. Car.Software Estonia AS plans to later also expand its procurement activities related to software.

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