BMW Group takes major stake in BBA China joint venture

bmw-china

In a recent press release, the BMW Group announced that it is extending the contract for the BMW Brilliance Automotive Ltd. (BBA) joint venture in China until 2040. The amendment to the contract was announced soon after the BMW received its new “business license” from relevant Chinese authorities.

KEY TAKEAWAYS

  • For how long did the BMW Group extend its joint venture in China?

    The BMW Group has extended its contract until 2040.
  • How much of the the BBA venture does the BMW Group own?

    The BMW Group now owns 75 percent of the BBA venture.
  • bmw-group-logo

    “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 BMW AG Chairman of the Board of Management Oliver Zipse.

    Through the abovementioned contract extension, the BMW Group will increase its stake in BBA from 50 to 75 percent. The remaining 25 percent will be left to the BMW Group’s partner, Brilliance China Automotive Holdings Ltd. (CBA).

    “BBA’s remarkable success story testifies to the proven partnership within the joint venture and with the provincial government in Liaoning. Our local investments are proving to be the right approach. BBA has significantly contributed to position the BMW brand as a leading premium brand in China. In the past decade alone, BBA has invested more than €10 billion in China. Our extended joint venture contract lays the foundation for further mutual growth and progressive development in the future. It, therefore, paves the way for balanced development in the three main regions of the world, as we have done in the past,” said BMW AG Member of the Board of Management Nicolas Peter.

    Effective February 11, 2021, the BBA joint venture will be fully consolidated in the Group Financial Statements of BMW AG. Payment of the purchase price — said to be around US$4 billion — is expected to be completed by 22 February.

    Photos from BMW Group

    Also read: 

    BMW Group furthers green push through use of low-carbon steel in European plants

    BMW Group reports 8.4% growth in 2021, EV sales up by 133.2%

    BMW Group assures chip supplies through direct agreement with manufacturers

    Read All

    Featured Articles

    Recommended Articles For You

    Read All

    Featured BMW Cars