Ukraine-Russia row may jeopardize BMW Group’s outlook

Article by Christian A., 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:

Comments

Recommended

BMW will be launching a new Competition Package especially for the M5’s 2018 model year. While in Frankfurt, Andy Cook, BMW’s product exec has talked with Motor 1 regarding some...
by - September 22, 2017
BMW’s pure M and M-performance are currently being offered with six- and eight-cylinder turbocharged engines. But while German premium rival Mercedes-Benz offers – through its AMG division – a line...
by - September 22, 2017
In a recent report by Automotive News, we learned that FCA is no longer pursuing its original plans in using Alfa Romeo’s Giorgio architecture on both the Dodge Charger and...
by - September 22, 2017
Volvo Cars is proving that it is serious in its intention to grab a good piece of the global market for premium sports utility vehicles. While its XC60 and the...
by - September 22, 2017
Tesla Motors may soon revive its plans to offer battery swapping services using a new approach. This comes as the carmaker was discovered to have filed a patent months ago...
by - September 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries