CBI member, BMW has announced that it will spend $4.16bn to take total control of its joint venture with Brilliance Automotive, which has been manufacturing BMW branded sedan cars in China for the marque since 2003
The German car manufacturer will up its stake in Brilliance Automotive from 50% to 75%.
The deal was apparently given the ‘green-light’ during a meeting between Chinese Premier Li Keqiang and a delegation from the European Union in July, but BMW delayed making any further announcements since the deal is still subject to regulatory and shareholder approval.
BMW expect the deal to be finalised in 2022, the same year that the Chinese government plans to lift restrictions on joint venture requirements for car manufacturing in China.
The German firm also announced that it will invest more than 3bn euros expanding its existing production capacity in China. BMW aims to build capacity in China from 450,00 to 650,000 units by the early 2020s, a manageable target considering the company announced in February that it would begin producing the Mini in China also.
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