The company is currently involved in implementing its part of the creation of joint production with BMW, particularly preparing infrastructure and a site for welding
KALININGRAD, September 27. /TASS/. The Kaliningrad-based Avtotor expects Germany’s BMW to decide on the continuation of production of the brand’s cars in Russia by the end of this year, Chairman of the Board of the Russian automobile holding Valery Gorbunov told TASS. The companies are discussing deepening the production of the brand’s cars.
“From the side of BMW there is a sustainable course to continue cooperation with Avtotor, though there are no details regarding the terms, volumes, the start of the work, so far. We are very close to the completion of joint work on taking particular decisions, and we are confident in that. We expect the position of BMW (to continue production in Russia – TASS) to be made public and approved this year,” he said.
The company is currently involved in implementing its part of the creation of joint production with BMW, particularly preparing infrastructure and a site for welding, Gorbunov added.
The contract between Avtotor and BMW, which does not stipulate any particular obligations on the depth of technologies, subsidies provision and other conditions, expires in March 2022. The car producer is to take a decision on cooperation by New Year as the April program is approved in the autumn.
When the special investment contract was concluded, BMW’s requirements did not meet Russian regulations, which is why the brand was not included in the SPIC (special investment contract) – an instrument the government uses to pay subsidies to companies, Gorbunov noted. “Cars will be produced without subsidies until the issue is finally solved,” he said.
Companies are negotiating the deepening of BMW car production technology at Avtotor. If a positive decision is taken “they (BMW – TASS) will be working on the Russian market under the same conditions as Mercedes, Volkswagen and others,” the chairman said.
“We expect this work to provide positive results and for cooperation to continue under new conditions. We are ready for that. Whereas in the case of no positive decision we will be thinking how not to lose the investments we made,” he added.
Earlier, the German concern in cooperation with Avtotor announced plans to construct an integrated plant to produce cars in Kaliningrad. In early 2018 BMW reported the creation of the subsidiary BMW Rusland Automotive LLC in Kaliningrad. Previously the company considered the option to build its own plant in the Khrabrovo technopark (in the Kaliningrad Region), but in 2019 it abandoned those plans in the near term.