BMW Group increases its stake in BMW Brilliance to 75% until 2040

2022-05-31 0 By

The first break through the 50% foreign equity limit of the joint venture car enterprises finally settled.On February 11, the new joint venture contract of BMW Brilliance Automobile Co., LTD. (hereinafter referred to as “BMW Brilliance”) officially came into effect. BMW Group’s shareholding in BMW Brilliance was changed to 75%, and Brilliance China Automobile Holding Co., Ltd. indirectly held the remaining 25%. The term of joint venture cooperation between the two parties was extended to 2040.As a result, BMW Brilliance became the first joint-venture car company with more than 50% foreign ownership, officially ending the restriction on passenger car ownership that lasted 28 years.According to the adjustment made by the National Development and Reform Commission and the Ministry of Commerce to the Special Administrative Measures on Access to Foreign Investment (Negative List) and the Special Administrative Measures on Access to Foreign Investment in Pilot Free Trade Zones (Negative List), effective January 1, 2022,China has officially lifted restrictions on foreign ownership in passenger car manufacturing and restrictions on the establishment of two or fewer joint ventures in China to produce the same vehicle products, allowing BMW Group to formally take control of BMW Brilliance.Since its establishment in 2003, BMW Brilliance has set up its first factory in Shenyang Dadong. Subsequently, in 2014, BMW Brilliance started to expand a new factory in the northeast of The dadong factory, which has four complete processes, and officially opened on May 19, 2017.In April 2019, the foundation stone of the Dadong plant expansion project was laid, and the new project is expected to be completed by May 2022.BMW Brilliance Tiexi plant construction began in June 2010, officially opened on May 24, 2012, the first phase of the project covers an area of more than 2 square kilometers.On April 1, 2020, BMW Brilliance began construction of a new plant in Tiexi, with mass production planned for 2022.In addition to the three production plants mentioned above, BMW Group has also built a powertrain plant and a RESEARCH and development center in Shenyang.The powertrain factory also has a power battery center.”This is an important step in the BMW Group’s investment in China as we continue to strengthen our long-term commitment to the Chinese market and continue to grow our business,” said BMW Group Chairman Thomas Zipzer.We firmly believe that the success of BMW Group in China is inseparable from the growth of our joint venture BMW Brilliance.The new joint venture contract, which has been extended to 2040, will provide a solid foundation for BMW’s sustainable business success in China, while also benefiting the development and prosperity of the local liaoning province and other interested parties.”After BMW increases its stake in BMW Brilliance, BMW Brilliance will also usher in another capacity increase.Previous factory expansions are already evidence of this, along with further additions of locally produced models and more locally produced all-electric models.According to last year’s data, BMW delivered more than 850,000 BMWS and Minis in The Chinese market in 2021, with a year-on-year growth of 8.9%, ranking first among luxury brands in China.This share increase reflects BMW Group’s long-term confidence in the Chinese economy, sends a very positive signal to the domestic auto industry, and is the latest example of China’s high-level opening-up, especially in the auto industry.The author of this article is Zhang Xiaoyu of kick car gang