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

Munich/Shenyang. 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.

 

In the past 15 years, BBA has become a cornerstone of the BMW brand’s
success in China, the brand’s biggest single market. In 2017, around
560,000 BMW brand vehicles were delivered to customers in China.
Two-thirds of all BMW vehicles sold in China last year were produced
by BBA at the two automotive plants in Tiexi and Dadong.

With a proven dealer network, a total of 16 new products for launch
in 2018 and an ongoing product roll-out in the upcoming years, the BMW
Group strives to continue its success in China. In the first eight
months of 2018, deliveries increased by 4.2 percent and, for the first
time, exceeded 400,000 units. With a wide range of RD activities
and extensive local production, the company is poised for future
growth, making a lasting contribution to the local economy.

 

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.

 

With its highly flexible production system, the new plant in Tiexi
will be able to build vehicles with fully electric, partially electric
and conventional drivetrains on a single production line.

 

“We are expanding our production system in Tiexi with a new plant.
This new plant, together with the existing engine plant and battery
factory, will put us in an ideal position,” according to Oliver Zipse,
member of the Board of Management of BMW AG, responsible for
Production. “With our highly flexible production system, we can
respond quickly to market demand and would be able to ramp up
production of electric vehicles to 100 percent of our output.”

 

In addition to its two existing vehicle plants, BBA opened its own
battery factory in Tiexi a year ago. In May 2018, the company laid the
foundation stone for a major expansion of this battery factory. The
new “High-Voltage Battery Centre Phase II” will produce new, more
powerful batteries with fifth-generation BMW eDrive technology for the
fully-electric BMW iX3.

 

The BMW Brilliance Automotive (BBA) joint venture

The BMW Brilliance Automotive joint venture was founded in 2003. Over
the past 15 years, it has become one of the most successful premium
vehicle manufacturers in China, encompassing production and sales of
BMW automobiles in China, as well as local RD. In 2017, the BBA
automotive plants in Tiexi and Dadong produced almost 400,000 vehicles
for the Chinese market – an increase of around 30 percent year-on-year.

 

Since 2009, BMW Brilliance Automotive has invested more than 52
billion RMB in its plants in Shenyang. In total, BBA employs more than
18,000 employees. Since the founding of the joint venture, the
supplier network has expanded to more than 350 companies. More than 80
suppliers have set up locations in the Liaoning province.

“15 years of BMW Brilliance is a joint success story that we share
with our partners and over 18,000 associates. With this additional
investment, innovation and job creation, we will continue our
high-quality development and drive economic growth in Liaoning
Province,” said Dr. Johann Wieland, president of BBA.

 

If you have any questions, please contact:

 

Corporate Communications

 

Saskia Eßbauer, Corporate and Culture Communications
Saskia.Essbauer@bmw.de,
Telephone: +49 89 382-24118

Max-Morten Borgmann, Corporate and Culture Communications
Max-Morten.Borgmann@bmwgroup.com,
Telephone: +49 89 382-24118

 

Mathias Schmidt, Head of Corporate and Culture Communications

Mathias.M.Schmidt@bmw.de,
Telephone: +49 89 382-24544


Sandra Schillmöller, Communications BMW Group Production Network

Sandra.Schillmoeller@bmwgroup.com,
Telephone: + 49 89 382-12225

 

Frank Wienstroth, Head of Communications BMW Group Production Network

Frank.Wienstroth@bmw.de,
Telephone: + 49 89 382-54459

 

Media website: www.press.bmwgroup.com

Email: presse@bmw.de

 

 

The BMW Group

 

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
The BMW Group production network comprises 30 production and assembly
facilities in 14 countries; the company has a global sales network in
more than 140 countries.

 

In 2017, the BMW Group sold over 2,463,500 passenger vehicles and
more than 164,000 motorcycles worldwide. The profit before tax in the
financial year 2017 was € 10.655 billion on revenues amounting to
€ 98.678 billion. As of 31 December 2017, the BMW Group had a
workforce of 129,932 employees.

 

The success of the BMW Group has always been based on long-term
thinking and responsible action. The company has therefore established
ecological and social sustainability throughout the value chain,
comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy.

 

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