According to the latest news from the British media Reuters, BMW recently said that it has renewed its contract with Brilliance China Auto until 2028. Analysts said the renewal will help the two companies continue their expansion in China, the world's largest auto market. However, both companies declined to comment on the details of the renewal contract. Countersink Neodymium Plate/Block Magnets Ningbo Hope Magnet Co.,Ltd , https://www.hopemagnets.com
Since its cooperation with Brilliance in 2003, BMW-based BMW has jointly developed and produced BMW X1 off-road vehicles, long-wheelbase versions of the 3 Series and 5 Series sedan at Brilliance's China plant.
Analysts said: "Strong partnerships and long-term high visibility are important for maintaining the status of BMW in China." According to the China Association of Automobile Manufacturers, despite the slowdown in domestic economic growth in 2013, sales of the Chinese automotive industry It increased by 15.7% year-on-year to 179,000 units.
BMW Motors achieved a record sales of 1.96 million units in 2013, with a sales target of over 2 million units in 2014. Of the 1.96 million cars sold in 2013, 20% were sold in the Chinese market. BMW is also expanding its presence in China as it seeks to reduce its reliance on the downturned European market. Last year, sales in the European market accounted for more than 44% of the Group's total sales. In 2013, BMW Motor sold 390,713 MINI and BMW brand cars in the Chinese market, an increase of 19.7% compared with the same period last year.
BMW has left a lot of their footprints in China. In June, BMW Motors issued asset-backed securities to fund its expansion plans in China.
BMW's move was to learn from the Daimler Group, which restructured its joint venture with BAIC last year and acquired China's market share and distribution network.
European and American automakers are eager to increase their share of the Chinese market, but their joint ventures with Chinese state-owned companies can only own 50% or less. In addition to the threshold for the company's shareholding ownership, the current policy requires foreign automakers to set up technology centers in China with Chinese companies and share the company's manufacturing technology with partners.
·BMW and Brilliance renewed their contract to expand in China by 2028