BMW X1 To Be Assembled in Russia

KALININGRAD, Russia — Avtotor, the Russian auto assembler and longtime partner of several American, European and Asian brands, will start assembly here of the new BMW X1 crossover on October 1.

At the initial stage, Avtotor expects to launch the production of the X1 sDrive18i Urban version priced at $42,000, as well as xDrive20d in Urban and Lifestyle versions priced at $50,000 and $55,000, respectively.

BMW says the first X1 models from the Kaliningrad plant will appear at Russian dealers in late October. According to the company's plans, by the end of the current year, more than 400 X1 models are expected to be assembled in Russia, while the total volume of BMW cars to be produced at Avtotor this year will exceed 10,000 units.

Financial details of the project have not been disclosed.

In addition to production of the X1, both companies plan to expand their cooperation in Russia during the next five years. According to local media reports, BMW in the long term expects to increase annual assembly in Russia up to 50,000 units a year and to launch full-scale production, including welding and painting. This may require further investment from BMW of several hundred million dollars, an unofficial source in Avtotor said.

Inside Line says: Look for BMW to sign a long-term agreement with Avtotor before X1 assembly is launched in October. — Evgeniy Vorotnikov, Correspondent