[News-Oxcart Network]
On February 11, the BMW Group announced that it had increased its stake in bmw Brilliance, a Chinese joint venture, to 75%, and the new joint venture contract came into effect, and the validity period of the joint venture cooperation was extended to 2040.
BMW Brilliance has also become the first fuel passenger car joint venture to complete the change of the share ratio after all the restrictions on foreign investment in China's automobiles have been relaxed.
Under the new contract, from February 11, 2022, BMW Brilliance will be fully consolidated into the group financial statements of BMW AG, which is expected to have a positive impact of 7 billion to 8 billion euros (about 50.7 billion to 57.8 billion yuan) in the financial data of BMW's automotive division.
"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." BMW Group Chairman Chiptzer said.
As a concrete measure for bmw group to increase investment in China, BMW Brilliance will increase its production capacity this year, of which the existing plant in Shenyang's Dadong District is currently undergoing a comprehensive expansion, and a new plant in Tiexi District is also under construction.
At the same time, with the expansion of production capacity, the variety of locally produced models will be further increased, and more pure electric models will be introduced for domestic production.
"In 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 invest with its Chinese counterparts and joint venture partners to make long-term contributions to China's economic growth and social development. Gao Le, President and CEO of the BMW Group greater China, further said.
In fact, the change in the shareholding ratio of the BMW Group's joint venture in China was finalized as early as 2018.
In April 2018, the shareholding limit of China Automobile Joint Venture was officially determined to abolish the phased transition.
In October of the same year, at the press conference of the 15th anniversary of BMW Brilliance, Brilliance Group and BMW Group jointly announced that BMW Group would acquire 25% of the shares of BMW Brilliance, and BMW Brilliance became the first joint venture car company to announce a change in the share ratio after the introduction of the policy.
It is worth mentioning that since 2019, China has been BMW's largest single market in the world.
In 2021, bmw group sales in China will be 850,000 units (including MINI), an increase of 9% year-on-year, accounting for 40% of the total global sales, of which BMW Brilliance's total production exceeds 700,000 units.
This year, in addition to the BMW X5, the BMW Group will also launch 26 new cars in the Chinese market, including the new 7 Series, i4, domestic i3, new i7 and other models. In addition, the BMW MINI will also be produced in Shenyang.