BMW has 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.” He added that a decision about whether to build an assembly plant in the region had been postponed.
Separately, BMW’s chief financial officer Friedrich Eichiner said he expected a mid triple digit million euros windfall in 2015 from fair value gains on derivative contracts used to hedge currency swings and commodity price fluctuations.
In the first quarter, gains from revaluing derivatives used to hedge currency amounted to a double-digit million euro amount, Eichiner said.
BMW sets Q1 records, affirms healthy 2015 outlook
