Luxury Carmaker giant BMW is spending $4 billion to take control of its business in China “to up its stake” in Brilliance Automotive from 50% to 75%.
The German Automaker – BMW is planning to pump more than 650,000 more units yearly in total by early 2020 from BMW Brilliance Automotive (BBA) plants in China. They said that BBA is the cornerstone of BMW’s success in the Chinese market, and added that by increasing the investment in BBA it would eventually produce about 100% electric cars.
This move of BMW will also give the company the opportunity to produce worth billions more from its production capacity in the country. This is amid China’s plans to relax rules for foreign car companies operating in its enormous market.
BMW makes several hybrid vehicles in China, and by the year 2020, the company is expecting to export the iX3 models from the country. February this year, BMW said that it would make electric powered Mini Cars in China with another firm, Great Wall Motor.
CEO of BMW, Harald Krueger stated in a speech that BMW is now embarking in a new era. He added that BMW’s new energy vehicles’ development and production base in China is quickly becoming important.
Managing Director of Automotive Foresight, Yale Zhang, said that while it has gotten harder for foreign automakers due to China’s Trade Policy, this is only temporary and once BMW gets a steady foothold in China business they are bound to make large sums of profits.
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