BMW Weighs Production in Russia

BMW AG is studying a plan to offset slower sales growth in Europe by launching local production in Russia.

CEO Harald Krueger tells reporters at the Geneva auto show that a decision is likely within the next several months. He says BMW is considering a factory site in Kaliningrad.

BMW currently assembles its 3 and 5 Series cars and SUVs in Russia from imported kits through a partnership with local carmaker ZAO Avtotor. Last year the brand’s sales rose 9% to 30,000 units, pulled up by a 12% market rebound after four years of shrinking volume.

Reuters notes that BMW rival Audi is already producing its Q7 large crossover in parent Volkswagen AG’s factory in Kaluga. Daimler AG’s Mercedes-Benz unit plans to launch local production of its E-Class sedan in 2019.​​​​