Brilliance can still hold BMW's thighs tightly! BMW Brilliance reassures: the new joint venture contract is extended to 2040

On February 13, it was reported that the BMW Group continued to increase its investment in China, and from February 11, 2022, 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, came into effect, and the validity period of the joint venture between BMW Group and its Chinese partners was extended to 2040.

This move reflects the BMW Group's long-term optimism in China's economy and its long-term commitment to making China its home and working hand in hand with China.

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. ”

Under the new joint venture contract, from February 11, 2022, the BMW Group's stake in BMW Brilliance was changed to 75%, and the remaining 25% of the shares held indirectly by its partner Brilliance China Automotive Holdings Limited.

Dr. Peter, Director of Finance at the BMW Group, said: "BMW Brilliance's success stems from the sincere cooperation of all parties involved in the partnership and the strong support of the Liaoning Provincial Government. ”

"Over the past decade, BMW Brilliance has invested more than RMB 73 billion in the region, and the BMW brand has become a leading high-end car brand in China with the full support of BMW Brilliance. The new joint venture contract has created favorable conditions for future-oriented and coordinated development. ”

BMW Brilliance has maintained steady growth since its establishment in 2003, which has strongly 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.

Previously, due to consecutive years of losses and insolvency, Brilliance Auto had officially declared bankruptcy reorganization in November 2020.

According to relevant statistics, from 2015 to 2019, its losses excluding BMW Brilliance's profit share were 540 million yuan, 600 million yuan and 860 million yuan, 420 million yuan and 1.064 billion yuan, respectively, with an overall loss of 3.484 billion yuan.

But today, BMW Brilliance is brilliance's largest profit cow, the joint venture share has dropped to 25%, and the benefits brought by BMW have been further diluted.