BMW AG increases stake in Chinese JV BMW Brilliance Automotive to 75%

Bayerische Motoren Werke Aktiengesellschaft (BMW AG) has acquired an additional stake of 25% in BMW Brilliance Automotive (BBA), the company’s Chinese joint venture (JV) with Brilliance China Automotive Holdings.

Headquartered in Shenyan, BMW Brilliance Automotive is an automobile manufacturing company, which is mainly engaged in the production, distribution, and sale of BMW passenger cars in mainland China.

BMW Brilliance Automotive manufactures BMW vehicles with internal combustion engines and electric drivetrains for the Chinese market as well as for export at two locations in Shenyang in Liaoning Province.

According to BMW AG, BMW Brilliance Automotive has just secured the relevant business licence in China. Formed in 2003, the joint venture has been extended to 2040 by the partners.

Following the transaction, BMW AG has an indirect stake of 75% in the joint venture, while its Chinese partner indirectly owns the remaining stake of 25%. BMW AG had previously held a stake of 50%.

Oliver Zipse — Chairman of the Board of Management of BMW AG said: “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.”

In 2021, BMW Brilliance Automotive had sold 846,237 BMW Group vehicles in the Chinese market, which is an increase of 8.9% compared to 2020. Last year, the Chinese automobile joint venture, which has a workforce of nearly 23,000 employees, produced over 700,000 BMW vehicles.