Continuation or new opportunity? BMW Brilliance's new joint venture contract is extended to 2040

This morning, BMW Brilliance Automotive Co., Ltd. officially announced that from February 11, 2022, the new joint venture contract of BMW Brilliance Automotive Co., Ltd., a joint venture of BMW Brilliance Group in China, officially came into effect, and the validity period of the joint venture cooperation was extended to 2040. The BMW Group has long-term optimism in China's economy and respects its long-term commitment to "making China its home and working hand in hand with China".

According to the description of the new joint venture contract, the BMW Group's stake in BMW Brilliance was changed to 75%, and the remaining 25% of the shares held indirectly by its partner Brilliance China Automotive Holding Co., Ltd.

BMW Brilliance (image source from the network)

"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." Chiptse, Chairman of the BMW Group, said: "We always firmly believe that the success of the BMW Group in China is inseparable from the growth of the joint venture BMW Brilliance. The new joint venture contract has been extended until 2040, which will lay a solid foundation for BMW's sustainable business success in China, while also contributing to the development and prosperity of local and other interested parties in Liaoning. ”

BMW Brilliance has been the largest taxpayer in Shenyang for 15 consecutive years, paying 38 billion yuan in taxes in 2020 alone. Last year, BMW Brilliance's total domestic procurement totaled nearly 33 billion yuan. Dr. Peter, Director of Finance of the BMW Group, said: "BMW Brilliance's success stems from the sincere cooperation of all parties involved in the cooperation and the strong support of the Liaoning Provincial Government". "Over the past decade, BMW Brilliance has invested more than RMB 73 billion in the region, and the BMW brand has become a leading high-end car brand in China with the full support of BMW Brilliance. The new joint venture contract has created favorable conditions for future-oriented and coordinated development. ”

BMW Brilliance has maintained steady growth since its establishment in 2003, which has strongly promoted the development of the local economy and actively supported the local government to build an advanced automobile manufacturing industry cluster. Bmw Brilliance business has also become an important revenue support for Brilliance Automobile, relevant statistics, from 2015 to 2019, its losses excluding BMW Brilliance's profit share were 540 million yuan, 600 million yuan and 860 million yuan, 420 million yuan and 1.064 billion yuan, respectively, with an overall loss of 3.484 billion yuan. Bankruptcy reorganization was officially declared in November 2020.