Upstream journalists learned today from BMW Group Greater China that the new joint venture contract of BMW Brilliance Automotive Co., Ltd. (hereinafter referred to as "BMW Brilliance"), a joint venture of BMW Group in China, has officially come into effect. According to the new joint venture contract, from February 11, 2022, the BMW Group's shares in BMW Brilliance will be changed to 75%, and the partner Brilliance China Automotive Holding Co., Ltd. will indirectly hold the remaining 25% of the shares, and the validity period of the joint venture cooperation will be extended to 2040.
Regarding the opening of the share ratio, in 2018, the National Development and Reform Commission said that the automotive industry will implement the transition period of opening up in different types, and in 2018, the restriction on the foreign ownership ratio of special vehicles and new energy vehicles will be abolished; the foreign ownership limit for commercial vehicles will be abolished in 2020; in 2022, the foreign ownership limit for passenger cars will be abolished, and the restriction on no more than two joint ventures will be abolished.
The official entry into force of the new joint venture contract of BMW Brilliance shows that BMW Brilliance has become the largest shareholder of BMW Brilliance and the first multinational luxury car brand in China to hold a joint venture car company.
Chiptzer, Chairman of the BMW Group, said: "Today marks an important step for the BMW Group to invest in China, and we will continue to strengthen our long-term commitment to the Chinese market and continue our business development. We have always believed that the success of the BMW Group in China is inseparable from the growth of the joint venture BMW Brilliance. The new joint venture contract has been extended until 2040, which will lay a solid foundation for BMW's sustainable business success in China, while also contributing to the development and prosperity of local and other interested parties in Liaoning. ”
As a concrete measure of BMW's continued investment in China, BMW Brilliance will usher in another capacity increase this year: the existing plant in Shenyang's Dadong District is currently undergoing a full expansion, and a new plant in Tiexi District is also under construction. Thanks to this, the BMW Group's production capacity in China will be expanded, the variety of locally produced models will be further increased, and more pure electric models will be introduced for domestic production.
It is understood that in the past ten years, BMW Brilliance has invested more than 73 billion yuan in the local area, and the company has maintained steady growth since its establishment in 2003, which has effectively promoted the development of the local economy and actively supported the local government to build an advanced automobile manufacturing industry cluster. BMW Brilliance has been the largest taxpayer in Shenyang for 15 consecutive years, paying 38 billion yuan in taxes in 2020 alone. Last year, BMW Brilliance's total domestic procurement totaled nearly 33 billion yuan.
Dr. Peter, Director of Finance at the BMW Group, said that the new joint venture contract has become the cornerstone of synergistic development for the future. Industry insiders believe that this move also reflects the BMW Group's long-term optimism in China's economy and its long-term commitment to making China home and working hand in hand with China.
Upstream journalist Ding Ruyao
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