BMW production suspended in Kaliningrad

BMW Group made a decision to suspend deliveries to Russia and stop the work of local production facilities operating in Kaliningrad.  The actions were taken against the background of the aggravation of the situation between Russia and Ukraine.

The auto holding said that further decisions would be made based on subsequent events.

The company explained that at the moment the work to ensure warranty obligations to customers in the face of limited supplies is underway.

Service maintenance of cars according to BMW standards continues its work, Kommersant reports, citing the sources of the company.

Two years earlier, BMW Group signed a contract with Kaliningrad Avtotor. Then the concern refused to open its own production and concentrated on agreements with the Russian plant. Now the activity at the enterprise is temporarily suspended, as well as the export of products to the Russian market.

The company has made a decision to close a number of factories of its suppliers in Ukraine, TASS reports. The auto holding believes that such a situation may affect the level of production in a number of the company's enterprises.

It is worth noting that the BMW contract with the Russian Avtotor ended in March of this year, and at the end of 2021, the concern had to make a decision on the prolongation of the contractual relationship.