BMW said today that it now owns a large majority stake in its Chinese joint-venture BMW Brilliance Automotive Ltd. with the granting of a license from the Chinese government. This allows a contract signed by the two joint-venture partners in October 2018 to become active. During the past decade, BBA has invested more than 10 billion euros in China. BMW’s larger new ownership share should add about 8 billion euros in profits at BMW this year.
BMW Group now holds 75% of the shares in BBA, while its Chinese partner, Brilliance China Automotive Holdings Ltd., indirectly holds the remaining 25%. Last year, a total of 846,237 BMW Group vehicles were delivered to customers in the Chinese market (+8.9% compared to 2020). In 2021, BBA produced more than 700,000 BMW vehicles, with around 23,000 employees.
“Today marks an important step, as we continue to expand our long and successful commitment to China. We firmly believe that our continued success in the world’s largest automotive market can only go hand in hand with the growth and further development of our BBA joint venture. The joint venture contract has been extended until 2040 and lays the foundation for sustainable business success, creating growth and prosperity in the province of Liaoning and beyond,” said Oliver Zipse, Chairman of the Board of Management of BMW AG.
BBA is increasing production capacity in Shenyang during 2022: The BBA plant in the Dadong district is currently undergoing an expansion. A completely new plant is also being built in the Tiexi district. The BMW Group will use the additional capacity to locally manufacture models for the Chinese market, which are also being produced in other plants. It will also be used to manufacture additional fully electric models in China.