According to a Reuters quoted two people familiar with the matter on Wednesday, German luxury car manufacturer BMW is seeking to set up a joint venture with Great Wall Motor in China to focus on the production of electric vehicles.
“We are discussing with Great Wall Motor Co. to establish a joint venture to produce cars in Changshu,†said a BMW executive who asked not to be named. “But I don’t know to what extent the joint venture has been carried out, or whether the two companies have obtained the government. Approval of the establishment of a joint venture."
Another person familiar with the matter said that the joint venture between Great Wall and BMW in Changshu will not produce gasoline or diesel-powered vehicles. This suggests that it may focus on electric vehicles.
In the Chinese market, the sales volume of BMW Group exceeded 500,000 units for the first time in 2016, with a total sales volume of 516,300 units (including MINI), an increase of 11.3% compared with last year (463,800 units), which is the second largest luxury brand BMW after Audi. Trying to stay in the second position, ahead of the third Mercedes-Benz. In 2016, Mercedes-Benz sales in China increased by 26.6%.
Recently, foreign automakers announced a series of investments and cooperation in China. Tesla, Ford, Daimler, and GM have all announced that they will build electric vehicles in China.
Great Wall BMW joint venture to produce electric Mini?
Both BMW and Mercedes-Benz are betting that they can mass-produce new electric vehicles based on traditional car platform designs, denying that some people believe that they must take radical plans to stop Tesla and some electric car start-ups. Threatening remarks.
Analysts at Bernstein, a well-known market research firm on Wall Street, said that in view of China's suspension of approval of the new fuel vehicle business, any form of joint venture between BMW and Great Wall Motor must produce and sell only electric vehicles.
Bernstein said in a report: "If Great Wall and Baoji are in a joint venture agreement, it is expected that they will most likely sell electric in a new brand like Daimler's joint venture BYD, Volkswagen joint venture Jianghuai, Ford joint venture Zhongtai. car."
The report also adds that the Great Wall and BMW joint ventures may sell electric vehicles under the Mini brand.
China hopes that by 2025, electric and hybrid vehicles will account for at least one-fifth of total vehicle sales, and plans to relax the rules of the joint venture to achieve its goals.
At present, BMW and Brilliance Automotive joint venture BMW Brilliance has two factories in Shenyang, mainly producing 1 Series, 2 Series, 3 Series, 5 Series and X1, X2 and X3. It is estimated that the sales volume will exceed 600,000 units by 2020. With the construction of Shenyang Battery Factory, BMW Brilliance will also produce battery-powered X3, plug-in hybrid X1 and 5 series.
“Our business development with BMW Brilliance will continue as planned and will continue to invest and develop our joint venture.†A BMW China spokesperson said that the joint venture between Great Wall and BMW stated that “no guess will be made†.
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