Avtotor Company Left Without Subsidies for BMW Cars
Avtotor is no longer receiving utilization fees for BMW cars, assembled according to the contract with the OEM in Kaliningrad. The German OEM is not ready to announce plans for increasing localization of production in Kaliningrad to return compensations.
It looks like for BMW it’s easier to raise final the price to compensate for a loss of subsidies, than to make local production deeper. Currently, Avtotor assembles X5, X6 and X7 in Kaliningrad. Sedan car assembly was shifted abroad last Spring.