Published on October 18th, 2018 | by Daniel Sherman Fernandez


BMW Group strengthens commitment to China with Brilliance Automotive

The BMW Group sets the course for the next chapter of its successful business development in China. With a long-term contract extension for the joint venture BMW Brilliance Automotive (BBA) and extensive investments for further expansion of the production capacity, the company plans to drive dynamic growth in the world’s largest automobile market.

In the context of the 15th anniversary of BBA, the BMW Group announced together with its partner Brilliance China Automotive Holdings Ltd. (CBA) the early extension of the joint venture contract and the further deepening of the existing successful collaboration. The extended contract is valid for 22 years (from 2018 to 2040). Furthermore, the BMW Group intends to increase its stake in BBA from 50% to 75% and both partners have just signed a corresponding agreement. This transaction is subject to the approval of the relevant authorities and the consent of the CBA Shareholders’ Meeting.

At the same time, the joint venture also announced an investment of more than three billion euros in new and existing plant structures in Shenyang over the coming years. In Tiexi, a new plant on the existing plant ground will double the site’s capacity, while extensive remodelling and expansion measures will target the neighbouring plant in Dadong. Production capacity there will remain the same, but the structure of the plant will gradually be expanded for future BMW model variants and the expected market growth. As a result, the total annual production capacity of BMW automobiles at the BBA plants will gradually increase to 650,000 units from the early 2020s, creating 5,000 new jobs.

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