BMW says it is to start assembling X4 models in Kaliningrad in partnership with Avtotor.
The Russian manufacturer, which also produces Cadillac, Hyundai, Kia, Opel and Chevrolet cars, will start work this summer in the enclave of Kaliningrad with kits supplied from Spartanburg in the US, although no details of volume are yet available.
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“We usually don’t comment on future figures and of course the Russian market is difficult,” a BMW spokeswoman told just-auto from Germany. “Avtotor is only producing cars for the local market.
“Production will start around summer and we can’t say exactly when the kits will be shipped.
“It is a question of taxes, nothing else. Like with many markets, taxes for imported cars are higher than for those produced locally. That is the only reason.
“If we imported cars to Russia directly k they would be so expensive that you would be hardly able to sell them.”
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By GlobalDataEarlier this month, BMW said it had postponed a decision to build an assembly plant in Russia because of slow vehicles sales in the country and uncertainty caused by the economic crisis.
Sales of BMW cars in the region fell more than 40% in March and board of management chief, Norbert Reithofer said: “Russia is a challenge for our company and we have asked ourselves how will things go on there.”
