BMW's stake in BMW Brilliance increased to 75%, share adjustment to be completed in 2022

On October 11, the BMW Group announced that it would extend the joint venture contract with Brilliance China and continue to deepen the cooperative relationship. In addition, the BMW Group plans to increase its stake in BMW Brilliance from 50% to 75%, and the two parties have signed relevant agreements.

BMW Group spent 3.6 billion euros (4.15 billion U.S. dollars) to increase its stake, and the contract period of the joint venture will be extended from 2028 to 2040. The transaction still needs to be approved by relevant regulatory authorities and the consent of Brilliance China shareholders.

BMW Brilliance announced that it will invest 3 billion euros in the existing and new plant structures in Shenyang in the next few years, and build the third BMW Brilliance plant in the Sino-German High-end Equipment Manufacturing Industrial Park in Tiexi, Shenyang, Liaoning. After the new plant is completed, the production capacity will double.

BMW said the increased investment would help total annual production capacity of BMW models at its Brilliance plants reach 650,000 units by the early 2020s and create 5,000 new jobs.

On October 10, Li Keqiang met with German BMW Group Chairman Harold Krueger. He said that the latest cooperation project between BMW and China will soon be implemented in Shenyang, Liaoning, and will be the first beneficiary after China relaxes the restrictions on foreign investment in the automobile industry. It can be said that it is "leading the way".

This equity adjustment will be completed in 2022. The five-year transition period for automobile opening promised by the Chinese government will also end in 2022. After 2022, restrictions on foreign equity in passenger cars and the restriction on no more than two joint ventures will be lifted, and China's automobile industry will achieve a high degree of openness.

In July this year, German "Manager Magazine" reported that German BMW would increase its stake in BMW Brilliance to 75%. After the news was announced, the share price of Brilliance China fell randomly, and the intraday decline once reached 19.71%. Subsequently, BMW and Brilliance both denied the news.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.