On the 14^th of June 2002 the BMW assembly plant in the Russian city of Kaliningrad produced its 5,000^th BMW vehicle. Since its establishment the JSC Avtotor plant has been very productive and has been recognized as one of the best BMW assembly plants in the world. Given the growth of sales of BMW vehicles in Russia the JSC Avtotor plant becomes very significant helping promote the BMW brand and meeting the swiftly growing demand for BMW vehicles.

The 14^th of June was a significant day for the Russian automotive industry that was commemorated in the Kaliningrad region on the highest level. On that day the Avtotor plant in Kaliningrad built its 5,000^th BMW vehicle. This BMW 5 Series vehicle is a major milestone in the plant’s history, and since its establishment the Avtotor plant has become one of the biggest automobile assembly plants in Russia.

In 1999 the German BMW concern came to the conclusion that it was necessary to start producing its vehicles in Russia and established the BMW Russland Trading company that became the BMW representative in Russia. The Avtotor company, being a partner of BMW Russland Trading, started producing BMW vehicles at its plants in Kaliningrad in October 1999. In the beginning of 1999 the Avtotor plant, having the Russian GOST RF certificate, started to prepare the whole management system to meet the requirements needed to get the ISO 9002 international quality certificate. Avtotor saw the introduction of quality control systems and corporate standards that conform to ISO 9002 and are used in assembling BMW vehicles at every production stage: from the reception of parts to the delivery of finished vehicles to the consumer. It took much effort and investment to improve the level of qualification of the management and production personnel. Within the framework of this cooperation several leading quality auditors from the Avtotor plant received instruction at BMW plants in Germany.

In March 2001 the Avtotor plant was given the prestigious certificate that confirms the conformity of the Production Quality Control System with the ISO 9002 international standard. The certificate was granted by the German firm TUV Management Service GmbH that is recognized all over the world as one of the most competent companies in quality audit and certifying of enterprises.

Currently the following BMW models are being built at the plant: 318i with M/T and A/T, 320iA with A/T, 525i Comfort with M/T and A/T, 525i Luxe with A/T, 530i Dynamic with M/T and A/T and 530i Luxe with A/T. Today BMW 3 Series is the sales leader in the Russian market in the BMW model range and the leader in its segment. The success story of BMW 3 Series is primarily connected with the beginning of the production of this model in Kaliningrad in spring 2001. It is especially important that it was the first time that the license for the production of BMW Individual had been given to a BMW automobile assembly plant outside of Germany. 96 unique BMW 320iA Individual vehicles have been built in Kaliningrad. Also, there has been an increase in sales of BMW 5 Series vehicles, and for 2 years now it has been the market leader in the "business class" sedan segment. All the vehicles built in Russia have special features for driving on Russian roads, namely they are equipped with a special bad road package that includes about 60 additional modifications to the standard European version.

The BMW plant in Kaliningrad is continuously increasing its production output. Since the beginning of this year the Avtotor plant has produced 917 vehicles. In 2001 the two assembly departments of Kaliningrad built 2,132 BMW vehicles (a 49,2% increase compared with 2000). The current productive capacity allows to continue increasing the production output and build as many as 15,000 units every year. Since 1999 the share of sales of the vehicles made in Kaliningrad has been continuously increasing in Russia. In 1999 the vehicles made in Russia made up only 21% of the total sales, and 2002 the share is estimated to be as big as 45% of the total sales.

The potential productive capacity of the Kaliningrad plant is especially important given the successful development of BMW Group in Russia and in the world. The first 5 months of 2002 became the most successful ones in the whole history of the BMW concern's activity in Russia. The total number of BMW vehicles delivered to clients during the period is 1,461. It is a 65% increase compared with the same period of 2001 when 888 vehicles were sold.

All this testifies to the fact that the JSC Avtotor plant is playing one of the key roles in meeting the growing demand for BMW vehicles in Russia. Having received international recognition as one of the best BMW assembly plants in the world and maintaining the highest quality of production, the Kaliningrad plant becomes a perfect element in the BMW Group corporate standards whose main objective is to strictly meet the client's demands. It is this that makes JSC Avtotor one of the leaders of the Russian automotive industry and allows to have the BMW traditional highest quality in the vehicles made in Russia.