Ukraine-Russia row may jeopardize BMW Group’s outlook

Article by Christian Andrei, on March 21, 2014

BMW Group’s outlook would be jeopardized if the ongoing crisis between Ukraine and Russia turns from bad to worse, according to chief financial officer Friedrich Eichiner. While Russia accounted for only 2 percent of BMW's 1.96 million vehicles in group sales in 2013, the country was among the automaker's fastest growing markets.

BMW posted a 12-percent surge in sales in Russia to 44,871 vehicles, in contrast to a 5.5-percent decline in the country's auto market, according to the Moscow-based Association of European Businesses. BMW’s figure included deliveries by the Mini brand. According to Eichiner, BMW was aware of potential risks of an escalated conflict between the two countries.

"There are risks in the Russian business. We see risks in currency. The the ruble has weakened. So long as the crisis does not escalate then we stick to our guidance. If it does, all our statements about our outlook that we made today need to be questioned," Eichiner said.

He noted that any spiraling of the dispute would compel the German carmaker to revise its plan for Russia, adding the BMW also has obligations with its business partners in the country. Eichiner said that BMW was ''closely monitoring the situation." Ian Robertson, BMW's board member for sales and marketing, said that he sees potential in the Russian market in the longer term.

In 2013, auto sales in Russia dropped 5.5 percent to 2.78 million units, delaying the country's rise as the second largest market in Europe next to Germany. [source: Reuters]

Topics: russia, bmw

If you liked the article, share on:


Login or Create new account to add a comment!


More than three decades ago, the DeLorean DMC-12 was produced by the DeLorean Motor Company. However, production was stopped due to issues within the company. The car itself was decent...
by - October 27, 2016
Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016
So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016