The BMW Group has extended the contract for the BMW Brilliance Automotive Ltd. (BBA) joint venture until 2040. The agreement on the contract extension was signed by the two joint venture partners back in October 2018, on BBA’s 15th anniversary. The corresponding amendment to the contract comes into force with the new “business licence”, which BBA received today from the relevant Chinese authorities.
With the issuance of the new business licence, the increase of BMW Group’s stake in BBA also is effective, as agreed upon by both joint venture partners in 2018. BMW Group now holds 75% of the shares in BBA, while its Chinese partner, Brilliance China Automotive Holdings Ltd. (CBA), indirectly holds the remaining 25%.
BMW iX in Shanghai
Last year, a total of 846,237 BMW Group vehicles were delivered to customers in the Chinese market (+8.9% against 2020). In 2021, BBA produced more than 700,000 BMW vehicles, with around 23,000 employees.
In response to strong demand, BBA is increasing production capacity in Shenyang again this year. The BBA plant in the Dadong district is currently undergoing a comprehensive expansion, while a completely new plant is also being built in the Tiexi district. The BMW Group will use the additional capacity to manufacture models for the Chinese market locally, which are also being produced in other plants. It will also be used to manufacture additional fully electric models in China.
Founded in 2003 with Chinese partner Brilliance China Automotive Holdings Ltd. (CBA), the joint venture produces BMW vehicles with internal combustion engines and electric drivetrains for the Chinese market and for export at two locations in Shenyang (Liaoning Province).
Effective 11 February, the BBA joint venture will be fully consolidated in the Group Financial Statements of BMW AG. Payment of the purchase price is expected to be completed by 22 February.