Boots on the ground! BMW Brilliance's new joint venture contract comes into effect The validity period of the cooperation has been extended to 2040

Reporting by Chen Yannan and Tong Haihua in Beijing

At the beginning of the Lunar New Year, under the background of China's policy of further opening up the automotive industry, the BMW Group continued to increase investment in China, and the upgrading of Sino-foreign cooperation entered a new stage.

On February 11, a reporter from China Business Daily learned from bmw group that from now on, 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, officially came into effect, and the validity period of the joint venture cooperation between BMW Group and its Chinese partners was extended to 2040. It is worth noting that 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. (hereinafter referred to as "Brilliance China") will indirectly hold the remaining 25% of the shares.

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. ”

Now, the dust has settled on BMW's equity change. BMW Brilliance's equity control has been changed from 50% of Brilliance China and BMW Group to 25% of brilliance China and 75% of bmw group, so that BMW Group will become the largest shareholder of BMW Brilliance and the first multinational luxury car brand to hold a joint venture car company.

As a concrete measure of the BMW Group's continued investment in China, BMW Brilliance will usher in another capacity increase this year: the existing plant in the Dadong District of Shenyang is currently undergoing a full expansion, and a new plant in The 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.

"We are very grateful to the Chinese governments at all levels for their strong support for BMW's development in China. The new joint venture contract extended to 2040 and the approval of the related BMW investment project in Liaoning are the latest examples of China's expansion of high-level opening up, especially in the automotive industry. Gao Le, President and CEO of the BMW Group Greater China, said, "In the process of the BMW Group's transformation to electrification, digitalization and sustainable development, China, as a leader in these aspects, is our best choice and best partner. The BMW Group will continue to take China as its home, and its Chinese counterparts and joint venture partners will continue to invest in the future to make long-term contributions to China's economic growth and social development. ”

In the view of industry insiders, the smooth landing of the new joint venture contract shows the bmw group's firm confidence in the long-term investment in the Chinese market, and has played a positive role in promoting the upgrading and transformation of the automotive industry in the future.

(Editor: Zhang Shuo Proofreader: Yan Jingning)