German premium carmaker BMW is bracing for car markets in Europe to remain volatile for at least another five years amid uncertainty over government debt in the region, its chief executive said on Tuesday.

"We believe that the underlying problem in Europe, which is mainly about debt, will persist for at least five more years," CEO Norbert Reithofer said at the Geneva car show.

He added that the company would take a close look at Russia as a possible production site and would decide on the matter in the next few months.

He also said German carmakers would coordinate on Wednesday on how to proceed in the controversy over coolants in vehicle air-conditioning.