The BMW plant in Kaliningrad? BMW checks the production in Russia

The BMW Group seems to think intensively about the opening of the first full-fledged plant in Russia. Specifically, the residents of Munich will have the location of Kaliningrad, in the visor, where in cooperation with the company Avtotor since 1999, a so-called SKD / CKD production takes place. SKD is in the industry for Semi Knocked Down, CKD for Completely Knocked Down. In practice, the definition means that the plant only an Assembly of partially or completely dismantled automobiles.

The Russian car market is currently, after a long crisis back in the ascendant, the previous paragraph of the year 2017 is at least 11 percent above the prior-year period. With the local production at the factory in Kaliningrad, the BMW Group customs and tax benefits, and better opportunities for the Expansion of the market could secure the shares in the coming years. Russia is potentially one of the largest growth markets in Europe and could replace economic and political stability provided – one day Germany as the largest market of the continent.

The complete Statement of the BMW Group in the text:

The BMW Group regularly reviews the long-term development of its production worldwide.

In the long term, we see Russia as a growing market for the BMW Group and check our future activities concerning a plant in Russia.

Due to the long-term presence of BMW in Kaliningrad, an attractive investment environment, and the plans of the local government to promote this even further, we are of Kaliningrad as a possible location for a plant in recital. The BMW Group observes the market situation and the regulatory framework.

During the last months of talks with the regional administration were held in order to examine existing and future possibilities and identify an optimal structure for a possible factory.

The process is coordinated with the Russian Federal authorities because of the forthcoming new strategy of “National Automotive Industry” will determine the regulatory frame for the potential project.

We can confirm that we have made with our long-standing Partner Avtotor progress regarding a future cooperation agreement.

The project is being developed with regard to the recently by the Russian government presented investment mechanisms. The BMW Group is in exchange with the regional authorities and Federal authorities.

Since 1999, the BMW Group cooperates in Russia with a local contract manufacturer. The production program includes currently: BMW 3 series sedan, BMW 5 series sedan, BMW 7 series sedan, BMW X1, BMW X4, BMW X5 and BMW X6. The vehicles are intended exclusively for the local market.

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