BMW Group plans joint venture for MINI electric vehicles in China

Munich. The BMW Group is in advanced discussions to
ramp up the global success of its MINI brand through a new joint
venture in China. A key element of the brand’s continued strategic
development will be local production of future battery-electric MINI
vehicles in the world’s largest market for electromobility. To this
end, the BMW Group has signed a “letter of intent” with the Chinese
manufacturer Great Wall Motor. In addition to production of the first
battery electric MINI at the main plant in Oxford starting in 2019,
this signals a further clear commitment to the electrified future of
the MINI brand.

 

Next steps will be to agree on the details of a possible joint
venture and cooperation agreement and clarify aspects such as the
choice of production location and concrete investments. The BMW Group
has no plans to set up an additional sales organisation in China. The
company is firmly committed to continuing the successful cooperation
with the established sales structure.

 

Independently of its strategic considerations towards the MINI brand,
the BMW Group will further expand its highly successful BMW Brilliance
Automotive (BBA) joint venture in China with its partner, Brilliance.
In addition to its two automobile production locations, BBA already
runs an engine plant, which includes a battery factory for electrified
BMW brand vehicles produced locally in Shenyang. This is the first
battery factory operated by a premium automobile manufacturer in China.

 

In recent years, BBA has become a cornerstone of the BMW brand’s
success in its largest market and serves as a model for the continued
development of MINI in China. Around 560,000 BMW brand vehicles were
delivered to customers in China in 2017 – more than in the next two
largest markets, the US and Germany, combined. In 2017, China was
MINI’s fourth-largest market, with around 35,000 units delivered. This
underlines the brand’s additional global potential.

 

The successful strategy for expansion of the BMW Group’s global
production network obeys a clear rule: Production follows the market.
However, expansion of the BMW brand in its largest markets, such as
China, has not led to a decrease in production at the company’s German
plants. On the contrary, between 2007 and 2017, production in Germany
increased by close to a quarter to around 1.15 million vehicles per
year. At the same time, almost half of all BMW production now takes
place at plants outside Germany.

 

A similar growth strategy could accelerate development of the MINI
brand significantly without questioning the BMW Group’s commitment in
the UK. The company has made significant investments over the years to
step up its involvement in the country.

 

If you have any questions, please contact:

 

Corporate Communications

 

Max-Morten Borgmann, Business and Finance Communications
Telephone: +49 89 382-24118, Fax: +49 89 382-24418

Max-Morten.Borgmann@bmwgroup.com

 

Glenn Schmidt, Head of Business and Finance Communications

Telephone: +49 89 382-24544, Fax: +49 89 382-24418

glenn.schmidt@bmwgroup.com

 

Media website: www.press.bmw.de

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 31 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 2016 was approximately € 9.67 billion on revenues
amounting to € 94.16 billion. As of 31 December 2016, the BMW Group
had a workforce of 124,729 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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