BMW takes control of its business in China

BMW takes control of its business in China

The restructuring of BMW in China, recorded in an agreement signed in 2018 with its partner Brilliance, officially came into effect on February 11, 2022. The resident of Munich now owns 75% of the joint venture, which has also been extended to 2040. .

BMW has held, since February 11, 2022, 75% of the joint venture established in 2003 with Brilliance.

As announced in October 2018, BMW’s share in its joint venture in China with Brilliance has risen to 75%, for a check of 3.6 billion euros. The Chinese authorities have given the green light and this distribution has been implemented since February 11, 2022.

Under the agreement, the joint venture between BMW and Brilliance has also been extended until 2040. BMW therefore has better control over its domestic business and can now consolidate the results of BMW Brilliance Automotive Ltd. (BBA) in its balance sheet. For the financial year 2022, this should translate into 7 to 8 billion in the account.

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In 2021, the BMW group delivered 846,237 vehicles on the world’s largest car market (+8.9%) and the joint venture, which has 23,000 employees, produced 700,000 units there. In an attempt to take greater advantage of the country’s growth, the two partners are expanding the Shenyang plant and are even going to build a new one in the Tiexi area.