12186.jpg

OREANDA-NEWS. German concern BMW postponed decision about construction of CKD plant in Russia, head of the company Norbert Reithofer said. The enterprise was planned to be established under the JV with Avtotor. Mr. Reithofer says, that the decision cannot be taken due to economic crisis in Russia, resulted in 40% decrease in new vehicle sales. 

Today BMW vehicles are assembled at Avtotor with SKD method. Construction of CKD plant in Russia was discussed in 2011. Then Mr. Reithofer said, that the concern was planning construction of an enterprise in one of the countries with emerging markets, including Russia. The plans were discussed with Vladimir Putin (Prime Minister of the Russian Federation then), Frank-Peter Arndt, member of  BMW board reported. In 2012 BMW and Avtotor were negotiating about joint venture establishment. 

Production capacity of the enterprises was to planned to be 50,000 vehicles per year under two-shift regime and the localization level was expected to come up to 48%. Investment in the project was estimated as €350 million.