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IN DEPTH: BMW has taken over the China Joint Ventures Will be taking up about 75%
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BMW has taken over the China Joint Ventures
Will be taking up about 75%
By Lana Mann

BT 201901 investment 01到2022年,宝马集团在合资公司中的持股将上调25%至75%






正如科鲁格所说,就在华晨宝马15周年庆典当天,宝马集团与华晨集团也同时宣布,双方将延长华晨宝马的合资协议至2040年,在此基础上,宝马方面将对合资公司增加30亿欧元投资,用于华晨宝马产能扩充。未来,BMW X5和BMW iX3两款车型也将放至华晨宝马生产,其中BMW iX3还将供应给全球其它市场。






The German multinational automobile company has been granted the right to own more than half of the joint venture's share in China after the removal of restrictions preventing foreign investors from owning over 50% of the share. The restriction levied on foreign automobile companies was removed due to the Germany company, BMW in collaboration with its venture partner, Brilliance Auto Group, about the pair's growth strategy for China, including what size stake the German automaker will hold if they are given the chance to dominate the Joint venture.

BT 201901 in depth 02One of China's stakeholders, Li Keqiang confirmed as of recent on a recent trip to Germany that the China automobile venture will be making the first historical event. The Germany company on its side has assured the world that it will be taking up about 75% of the total share of China's automobile venture. The automobile company wants to combine its growth strategy to bring about a rapid growth in the China automobile world.

After the agreement, the BMW and its partner, Brilliance agreed to increase its total annual production capacity by an increase of 70,000 vehicles producing the BMW latest all-electric BMW iX3 in China for export worldwide starting in 2020. This was a step to increase the relevance of the China-based automobile company, competing with other automobile company ventures around the globe.

This decision has been thought of as one that will spring up other automobile companies to seek for the same attention which will bring an increase in their stake thereby reducing the BMW's high rank. The use of electric cars with inbuilt plug-in hybrids are set to be placed on cars that are not used for commercial purposes. This design is also to be implemented on commercial vehicles such as trucks will start by the year 2020. The BMW has its highest sale of vehicles of about 380,000 cars in China the previous year accounting for two-thirds of its total sales in the country.

BT 201901 in depth 04As a result of BMW's highest take, the German multinational automobile is set to be the controller of the Joint venture in China after it has paid a sum of $4.2 billion so as to increase its stake from 50% to 75%. This step of having the majority control will allow BMW a larger share of the lucrative Chinese business, which will be the BMW’s single biggest sales channel on planet Earth. China, the world’s largest car market was known to had long sealed off its industries from foreign competition, allowing the non-Chinese companies to operate in joint ventures with local businesses.

The deal is said to generate the idea of bringing up the effect of producing electric SUVs, the BMW iX3, which are to be sold outside China. The expansion of this business could help offset Chinese tariffs, making about 40 percent in total, which Beijing slapped on cars imported from the United States because of Trump’s trade war with China.

The statement “for the first time reached the agreement on increasing the share of German automobile companies in the jointly invested projects in China.” was said by a member of the Chinese foreign ministry and this has assured the German company, BMW the largest stake after the Chinese government reversed its capped investment of 50% maximum on foreign automobile competitors thereby giving chances to foreign competitors to run the Chinese business.

BT 201901 in depth 03It is well known that after China promised last month to fully lift restrictions on foreign ownership in the car industry within five years, and for electric automakers by the end of this year. The company has signed an agreement with Brilliance, the third largest producer of electric cars, to expand the joint venture which will help in boosting the rate of production and the laid down directives to export the upcoming electric iX3 sport utility vehicle from China to other countries around the globe. The agreement was among the dozen sealed by German and Chinese companies during the prime minister’s visit to Germany.

The trade war between the United States and China has led to a rising problem on tariffs on cars and car parts had led to the movement of the Chinese automobile companies to the German which will bring about a contribution to a stronger international trade. The movement of many German made cars to the Chinese country also made a plus to the decision of the Chinese company to work with BMW automobiles.

The intervention of the German company is believed to help improve the economy of China at large and also helps to reduce tariffs levied on the Chinese for car parts. These tariffs levied on the Chinese company causes a great reduction in the net income and profit of the company making the business less lucrative.

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