BMW Will Not Build Factory in Russia, Company Halts Negotiations

The president of BMW Group Russia, Stefan Toyhert, has announced that automotive production in Russia is in a dire situation. He emphasized that negotiations over building an auto manufacturing plant in Russia, which had been ongoing for a year and a half, were halted as of July 2019.

Toyhert clarified that favorable playing conditions have not been established, which is why the factory will not be built in Russia. In his opinion, the unfavorable conditions of special investment contracts, including the increase in fees for usage and recycling in 2020, will lead several manufacturers to exit the Russian market.