BMW halts export of cars to Russia, expects production interruptions

FRANKFURT — BMW said it had halted the export of cars to Russia and would stop production in the country.

“Due to the current geopolitical situation, we are discontinuing our local production in Russia and export to the Russian market,” BMW said in a statement on Tuesday.

The automaker also said it expected output in its factories in Germany and other European countries would be interrupted because of supply bottlenecks.

Where, when and for how long production will be interrupted is still under review, BMW said.

BMW’s biggest factory in Europe, in Dingolfing, Germany, could halt production next week, according to local media reports.

BMW sources wire harnesses from western Ukraine.

German cable maker Leoni, with two plants in Ukraine employing some 7,000 workers, said it is intensifying efforts to help offset the disruption in Ukraine by adding capacity at other sites, while prioritizing the safety of its employees. 

“Logistics in and out of Ukraine are a particular challenge, especially because of the partly chaotic situation at the border points with the EU,” a Leoni spokesman said in a statement.

German automotive companies and suppliers maintain some 49 production sites in Russia and Ukraine, according to the German car lobby group VDA.

Last year, BMW assembled about 12,000 vehicles at a factory in the Russian exclave of Kaliningrad that BMW has operated with local partner Avtotor for more than 20 years.

Sales of BMW brand vehicles in Russia rose 10 percent to 46,802 last year, according to the Moscow-based AEB industry association.

Reuters and Bloomberg contributed to this report