15 years BMW Brilliance Automotive: BMW Group strengthens commitment to China

The BMW Group sets the course for the next chapter of its successful business development in China. With a long-term contract extension for the joint venture BMW Brilliance Automotive (BBA) and extensive investments for further expansion of the production capacity, the company plans to drive dynamic growth in the world’s largest automobile market.

In the context of the 15th anniversary of BBA, the BMW Group announced together with its partner Brilliance China Automotive Holdings Ltd. (CBA) the early extension of the joint venture contract and the further deepening of the existing successful collaboration. The extended contract is valid for 22 years (from 2018 to 2040). Furthermore, the BMW Group intends to increase its stake in BBA from 50 percent to 75 percent and both partners have today signed a corresponding agreement. This transaction is subject to the approval of the relevant authorities and the consent of the CBA Shareholders’ Meeting.

At the same time, the joint venture also announced an investment of more than three billion euros in new and existing plant structures in Shenyang over the coming years. In Tiexi, a new plant on the existing plant ground will double the site’s capacity, while extensive remodelling and expansion measures will target the neighbouring plant in Dadong. Production capacity there will remain the same, but the structure of the plant will gradually be expanded for future BMW model variants and the expected market growth. As a result, the total annual production capacity of BMW automobiles at the BBA plants will gradually increase to 650,000 units from the early 2020s, creating 5,000 new jobs.

“We are consistently following our growth strategy for China. With continuous investment, as well as the development and production of electric vehicles, we underline China’s importance as a dynamic growth market for us,” said Harald Krüger, Chairman of the Board of Management of BMW AG. “Our success story goes hand in hand with the success of the joint venture BBA. Together with our partners, we contribute to the sustainable development of the Chinese market,” he added.

In 2017, the BBA automotive plants in Tiexi and Dadong produced almost 400,000 vehicles. Currently, six BMW models are produced in Shenyang: Plant Tiexi manufactures the BMW 1 Series Sedan, the BMW 2 Series Active Tourer, the BMW 3 Series Sedan (including Long Wheelbase version) and the BMW X1 (including plug-in hybrid version). At Plant Dadong, the BMW 5 Series Long Wheelbase version (including plug-in hybrid version) and the BMW X3 are manufactured. From 2020, the fully-electric BMW iX3 will also roll off the production line at Plant Dadong, its sole production location, and be exported from China to markets worldwide.

Anniversary celebration in Shenyang
The anniversary celebration held at the BBA automotive plant in Tiexi / Shenyang was attended by Yumin Qi (Chief Executive Officer of Brilliance China Automotive Holdings Ltd.), Xiaoan Wu (Chairman of BBA), Harald Krüger (Chairman of the Board of Management of BMW AG), Dr. Nicolas Peter (Member of the Board of Management of BMW AG, Finance), Oliver Zipse (Member of the Board of Management of BMW AG, Production) and representatives of the Chinese government.

“BMW Brilliance Automotive is a unique success story and provides an outstanding example of a strong partnership built on trust,” added Yumin Qi, Chief Executive Officer of Brilliance Automotive Group Holdings. “This joint success is also driving economic development in Liaoning Province.”

BBA lays the foundation for further growth of the BMW brand in China

“Today, as well as celebrating 15 years of a strong and reliable partnership with Brilliance, we are also laying the foundation for further growth of the BMW brand in China,” stated Dr. Nicolas Peter, member of the Board of Management of BMW AG, responsible for Finance.

A leader in electromobility: full range of drivetrains on a single production line

The BMW Group anticipates strong growth in demand for electric and electrified vehicles in China. As a leader in electromobility, the company is systematically gearing its production towards this trend. With six electrified models currently available, the BMW Group offers Chinese customers the widest range of options in the premium segment. In 2017, the BMW Group more than doubled its sales of electrified vehicles in China from the previous year and expects this growth to continue in 2018.