AVTOTOR will suspend BMW assembly due to components shortage

AVTOTOR will suspend BMW assembly due to components shortage


 

Kommersant.- BMW assembly will be suspended at Kaliningrad Avtotor plant as of mid-June, as told by the general director of Avtotor Ruslan Sadikov. A temporary backlash has occurred in automotive component supplies as a result of the stoppage of BMW factories in Europe and the USA in spring 2020, Sadikov explained. The resumption of the conveyor and the return to normal production is planned for the beginning of July.

The car factory has emphasised that the decision has not been made on a momentary basis. The turn of the events has been envisaged and measures have been taken to minimise the negative consequences of the current situation. In order to ensure the partial employment of the staff during the suspension of production, both unscheduled and scheduled preventive measures will be taken to service the equipment.

The problem of insufficient supplies will be solved completely by mid-July or the end of the month, as told by the head of BMW Group Russia Stefan Toichert, during an interview with RBK. Toichert has stated that the capacity of the Kaliningrad plant is 70% loaded for the moment. “We are observing all necessary requirements of work safety and the daily shift number has been reduced from three to two” he added.

The sales of BMW automobiles have risen by 12% to 10,900 vehicles in Russia during the January-March period. The company publishes sales figures on a quarterly basis only. The car and LCV markets have shrunk in record rates in the last months, during the quarantine: 72.4% in April and 51.8% in May. The regional dealers have postponed the resumption of operations until May and the centres in Moscow till even later, in June, following the introduction of the Coronavirus restrictions at the end of March.

The production was suspended for two weeks only, between 30 March – 13 April in Avtotor within the framework of the quarantine measures. KIA and Hyundai automobiles, as well as Hyundai and Ford Cargo commercial vehicles are manufactured at the enterprise, in addition to the German brand. As told by an Avtotor representative to Kommersant, no problems occurred with the supply of the components of these brands on the background of production shrinkage.