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]
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