The BMW Group is buying Herald Leasing, one of the China’s leading providers. BMW said it’s reacting to the importance of the emerging leasing business in the world’s largest vehicle market, and laying the foundation for further growth. The parties have agreed not to disclose any contractual details.
China is the largest single market for the BMW Group worldwide. As the leading manufacturer of premium vehicles, the company delivered 343,000 BMW, MINI and Rolls-Royce vehicles to customers in the first nine months of 2015.
One of Herald Leasing’s cited strengths is its broad geographic base in China. To be able to offer leasing services across the country, companies in China need local business permits – lot of room for unsavory Communist Party behavior here – as well as a national leasing license – ditto. Herald Leasing is already present in 58 Chinese cities and offers leasing at all those locations.
With its wide coverage, Herald is one of the largest leasing providers in China. The company founded in 2009 employs 250 people. Reported revenues during 2014 were RMB 208.
“We firmly believe in the medium and long-term potential of the Chinese auto market and are preparing for the next phase of growth,” said Erich Ebner von Eschenbach, head of BMW Group Financial Services. “New business areas, such as leasing and fleet management, will be an increasingly important part of this.”
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
