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08/06/1998 11:28:35 BMW looks at vehicle assembly in Russia

MUNICH, Aug 6 (Reuters) - Germany's BMW AG is looking at the

possibility of starting the assembly of cars in Russia with

ready-made parts and components, the Munich-based luxury car

maker said on Thursday.

BMW strategy in Russia was under constant review and

included "considerations of eventual knock-down kits production

in Russia," a BMW spokesman said.

Knock-down kit assembly involves the production of cars with

ready-made components and parts.

The company declined to comment on a German press report

that BMW representatives plan to visit two plants in Kaliningrad

owned by Russian vehicle maker ZAO Avtotor in coming weeks. The

report cited ZAO Avtotor chief Valery Sokolov.

ZAO Avtotor expects to sign a cooperation deal with BMW on

vehicle assembly by the middle of this month, according to a

report in the Sueddeutsche Zeitung.

REUTERS

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