On October 11, 2018, on the occasion of the 15th anniversary of the founding of BMW Brilliance, Brilliance and BMW jointly announced that BMW will acquire part of bmw Brilliance for 3.6 billion euros, increasing the share ratio to 75%, and completing the change of equity adjustment in 2022.
After more than 1,200 days of waiting, the BMW Group finally completed the capital increase and share expansion of BMW Brilliance, becoming the first foreign car company to open up the "crab eating" ratio of joint venture shares. This also means that the passenger car stock ratio restriction that has lasted for 28 years has officially withdrawn, which is the latest example of China's expansion of high-level opening up.
On February 11, 2022, BMW Group announced that the new joint venture contract of BMW Brilliance Automobile Co., Ltd. will come into effect from now on, the shares held by BMW Group in BMW Brilliance will be changed to 75%, Brilliance China Automotive Holding Co., Ltd. will indirectly hold the remaining 25% of the shares, and the validity period of the joint venture cooperation between the two parties will be 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. ”
Home in China, production capacity, scale double expansion
Looking at the global auto market, China's auto sales have ranked first in the world for 13 consecutive years, almost the largest single market segment of major multinational car companies. Its strategic position is beyond doubt for foreign brands, and the depth of localization layout directly affects the performance of car companies in the Chinese market. And those who are willing to call China "home", BMW is still a very small number of existence.
On December 16, 2021, BMW held the 2022 "New Year Online Annual Meeting", saying that in the future, it will maintain synergy between corporate strategy and China's development goals, adhering to the principle of "China first". The official entry into force of the new joint venture contract is the best commitment of the BMW Group to strengthen its "home in China".
With the closeness of the passenger car joint venture share ratio, in addition to BMW, Mercedes-Benz, Volkswagen and other car companies are also actively seeking to increase the share ratio. Behind the frequent actions of multinational car companies, in addition to the huge profits, it is the top priority to improve the discourse power of joint venture car companies, the decision-making efficiency of the local market, and to promote the development in China and its international strategy.
According to the data, BMW delivered more than 846,237 BMW and MINI vehicles in the Chinese market in 2021, an increase of 8.9% year-on-year, and won the first sales volume of luxury brands in China. According to the plan, by the end of 2023, the BMW Group can increase the number of pure electric products in the Chinese market to 13 models; by 2025, a quarter of the BMW Group's sales in the Chinese market will be pure electric vehicles.
According to the development plan, the relevant production capacity and scale increase are very necessary. According to relevant people in the BMW Group, 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. Among them, "the increase in model varieties and more pure electric vehicle models for domestic production" are the key information points.
Deeply cultivate localization and consolidate the first-mover advantage
Gao Le, President and CEO of the BMW Group Greater China, said, "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. ”
In 2021, in addition to BMW winning the first place in sales of luxury brands in China, there is also a data that is very eye-catching. Its new energy model sales exceeded 48,000 units, an increase of 69.6% year-on-year, and it is also the only brand in the BBA to announce new energy sales. Among them, the sales of pure electric BMW iX3 exceeded 21,000 units, which was more eye-catching than the other two competing models in the BBA lineup.
According to the plan, in 2022, BMW will bring Five pure electric matrixes for Chinese users, including the innovative BMW iX, the innovative BMW i4, and the pure electric BMW 3 series put into production in Shenyang, and another pure electric flagship model will also be randomly unveiled, which will undoubtedly further consolidate BMW Brilliance's advantages in the field of luxury new energy vehicles.
As for the field of traditional fuel vehicles, the BMW X5 medium and large SUV will usher in a longer wheelbase and domestic production, and the price will drop by 150,000. Let's take a look at the 4 Series, 7 Series, X4, X6, Z4, iX and other imported models, they have a very distinct personality and strong attraction, if the future can gradually achieve domestic production, BMW's overall competitiveness in the Chinese market will be on another level, building more first-mover advantages.
At the same time, BMW's digital innovation layout in China is also accelerating, and has established the largest R&D and digital system outside Germany, covering the relevant areas of the whole life cycle of automotive products. With a longer-term perspective, after the equity increase, BMW is bound to introduce more resources and products into the Chinese market, bringing more choices to Chinese consumers.
The survival of the fittest accelerates to meet the era of strong and strong joining forces
Looking back at the development history of China's auto market, the original intention of the stock ratio restriction is to make the local auto industry develop more smoothly. Nowadays, the opening of the stock ratio and the development of China's automobile industry on a more healthy and sustainable development path are still the original intention. The change of bmw brilliance's controlling interest is a classic case of the change in the controlling right of Sino-foreign joint venture car companies.
The joint venture share ratio is liberalized, and the identity of the Chinese and foreign parties, which used to be on an equal footing, is no longer transformed into an orderly competitive relationship, the right to speak will gradually tilt to the stronger side, and new forms of Sino-foreign cooperation will gradually appear.
Taking BMW Brilliance as an example, the joint venture partner, Brilliance Auto, is almost in a state of "lying win" in the process of joint venture, and has not been able to bring more substantive support to it. In Uncle Zhong's view, the gradual liberalization of the shareholding ratio restrictions provides a fairer competitive environment for Chinese and foreign car companies, accelerates the survival of the fittest in the market, and constantly forces the development and growth of independent brands.
At the same time, foreign car companies will also usher in diversified development in China's auto market. BMW and Great Wall Motors, a 50:50-share joint venture, are expected to achieve mass production of the first car in May 2022; Mercedes-Benz and Geely will establish Zhimada Automobile in a 50:50 share ratio, and the smart electric model will be listed soon.
It is not difficult to see that under the new model, foreign car companies prefer to seek cooperation opportunities with head private car companies and enter the era of "strong alliance". Even if the stock ratio is liberalized, it is still a 50:50 equal relationship, and both sides have their own resources and advantages, to some extent, this is a real sense of the market autonomous adjustment stage.
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When the equity change and the dust of the new joint venture contract landed, it not only opened a new chapter in bmw brilliance's development in China, but also a classic case of the change of the controlling right of China's joint venture car companies, and sounded the clarion call of the battle of the share ratio of China's joint venture automobile companies.
Judging from the current situation, the major joint venture car companies are still willing to remain the same, but the competition around the joint venture share ratio of the whole vehicle has been secretly staged. Whether to retain the shareholding ratio of the original joint venture company, or increase the proportion of shares to obtain the dominant right, or to find a new partner, it all depends on whether the Chinese and foreign parties are satisfied with the past cooperation and whether the future strategy and views are consistent.
After the first shot of the release of the passenger car joint venture stock ratio, it is a new starting point and represents an era of more fierce competition.