BMW will increase the share in the Chinese joint ventureOctober 15, 2018
Now BMW AG will own not 50% in its Chinese joint venture, but 75th, when a 3.6 billion euro deal will be closed in 2022. This was made possible thanks to Beijing’s statements about the lifting of restrictions on foreign participation in automobile joint ventures this year. This writes the portal “Prime” with reference to Dow Jones.
BMW and Brilliance China Automotive Holdings Ltd. Not only agreed to increase the share of Germans, but also to extend the agreement itself on the joint venture BMW Brilliance Automotive Ltd. from 2028 to 2040 In the German company said that the transaction regarding the acquisition of additional shares of the joint venture will be approved by the government and shareholders of Brilliance China in the usual manner.
Thanks to a new deal, BMW plans to expand existing production sites in Shenyang, create new ones and increase the production of cars. For these purposes, the company invests more than three billion euros.
Since 2020, manufacturers are going to increase production at the joint venture to 650 thousand cars a year. Thus, five thousand people will get jobs in the factories.
BMW Chairman Harald Kruger said in a press release that they are systematically implementing their growth strategy in China. By investing funds, developing and producing electric cars, they thus emphasize the importance for the company of a dynamic and very promising local market.
According to statistics, in 2017 about 560,000 BMW cars were transferred to Chinese buyers and two thirds of this amount was produced by a joint venture at factories in Tesi and Dadune.