It’s been reported that BMW will not be opening a factory in Russia, after talks with government officials broke down over the level of economic incentives for the plant.
“The building of the plant had to be economically feasible and beneficial,” said Stefan Teuchert, BMW Russia CEO. “Besides that, we need to maintain a reasonable balance between localised and imported models,” he told Automotive Logistics.
Currently, BMW local partner Avtotor builds 3- and 5-Series sedans, as well as SUVs in Kaliningrad, using imported semi-knockdown kits. Back in 2018, BMW CEO Harald Krueger said that his company was considering building its own production facilities in Russia.
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A BMW spokeswoman told Autonews Europe that the company continually reviews its long-term global production, but refused to comment on the actual report.
“We see Russia as an important market for the BMW Group and are in constant contact with our local production partner Avtotor,” said the spokeswoman.
Meanwhile, rival Daimler opened a Mercedes-Benz factory near Moscow last year (an event attended by President Vladimir Putin) and was the best-selling luxury brand in Russia in 2019, moving 42,046 units (an 11 percent increase). BMW took second place with sales of 41,520 units, up 17 percent.
Daimler’s plant is located in the town of Esipovo, 40 km north-west of Moscow, and can produce as many as 25,000 cars per year. Initially, only E-Class sedans will be built there, but SUV production is said to follow, according to Daimler.
