BMW Delays Decision On Factory Amid Russia's Economic Crisis
The ongoing economic crisis suffered by Russia has given pause to a decision by BMW to build an assembly plant in the ailing nation.
CEO Norbert Reithofer said Russia is “a challenge” for his company to overcome, Automotive News Europe reports, leaving the execs to wonder “how things will go on there.” The company’s sales in the market fell 14 percent over Q1 2015. The overall market itself dropped 36 percent over the same period, with the luxury market buoyed by wealthy consumers investing in hard goods.
While BMW is backing off on its decision to build a factory, rival Mercedes-Benz – whose sales climbed 9 percent over the first quarter – is looking over three potential sites in Russia for a new factory.
At present, BMW’s Russian market models are assembled from kits by manufacturer Avtotor in Kaliningrad under contract.
[Photo credit: BMW Russia/ Facebook]
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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So BMW supplied you with a photo of the view that Boris Nemtsov saw while walking on that bridge moments before his death a couple of months ago. Just tells you how in-tune BMW is.
Interesting that they assemble in Kaliningrad. Can't figure out if that's the best or the worst place to live in Russia. Being surrounded by the EU could be seen as a plus or a minus. On a side note I don't believe luxury brands have seen a drop in sales. On the ground here in Russia nothing looks to have changed much.
Putin is a nut job. Russian billionaires have been leaving for some time now. Real estate has been booming in Miami and NY with the help of people leaving Russia.
I'm not sure that Russia is 'ailing' so much as 'bleeding out from multiple gunshot wounds to the foot'.