The BMW Group has indicated its direction in China for the period to 2040 and beyond with the declaration that it would raise its stake in the China joint venture BMW Brilliance Automotive.
The announcement came as part of the 15th anniversary celebrations of the joint venture and projects the BMW Group investing substantially in future growth by raising its stake from the current ceiling of 50% to 75%. This is itself possible due to the regulations governing current foreign investment and ownership running out by 2020. The partners in the venture will be extending their current contract for a further 22 years from its current expiry this year all the way to 2040.
The new investments cover three billion Euros in new and existing plants in Shenyang, with a new plant in Tiexi, doubling the site’s capacity as well as major expansion at Dadong. BMW expect a volume of 650,000 over the next few years, growing from last year’s volume of 400,000 units.
“We are consistently following our growth strategy for China. With continuous investment, as well as the development and production of electric vehicles, we underline China’s importance as a dynamic growth market for us,” said Harald Krüger, Chairman of the Board of Management of BMW AG. “Our success story goes hand in hand with the success of the joint venture BBA. Together with our partners, we contribute to the sustainable development of the Chinese market,” he added.
This venture does not encompass the full electric products BMW will be making with the Great Wall group.