BMW ramps up investment in China to meet electric demand

BMW CEO Harald Krueger, right, underlined the importance of China to the German automaker, saying the country, with its increased demand for electric vehicles, is a dynamic growth market for his country. (AP Photo)
Updated 11 October 2018

BMW ramps up investment in China to meet electric demand

  • Munich-based BMW said it would pay €3.6 billion to raise its stake in BMW Brilliance Automotive Ltd. to 75 percent
  • BMW will invest in new and existing plant facilities in Shenyang, increasing production capacity to 650,000 vehicles a year from the early 2020s

FRANKFURT: German automaker BMW is taking a majority stake in its China joint venture and investing €3 billion ($3.5 billion) in factories there, underscoring the importance of the Chinese market as the company prepares to meet increased demand for electric vehicles.
Munich-based BMW on Thursday said it would pay €3.6 billion to raise its stake in BMW Brilliance Automotive Ltd. to 75 percent from 50 percent.
Alongside the deal, BMW will invest in new and existing plant facilities in Shenyang, increasing production capacity to 650,000 vehicles a year from the early 2020s. The plants produced 400,000 vehicles last year.
A new plant will be able to produce fully electric, partly electric, and conventional vehicles on the same line.

 

The Chinese government has issued a new energy vehicle mandate which uses a system of credits to push automakers to increase the share of battery-only and hybrid cars in their sales mix.
The policy is expected to increase the number of electrically powered vehicles in the world’s largest car market over coming years.
Last year, battery-only and hybrid cars were 2.2 percent of the Chinese market; the International Council on Clean Transportation estimates that could rise to around 4 percent by 2020 under the policy.
The country is BMW’s single largest sales market, with 560,000 vehicles sold there last year.
The deal is subject to approval by regulators and shareholders of Chinese partner Brilliance China Automotive Holdings.
BMW is taking advantage of the Chinese government’s plans to end the requirement that foreign auto manufacturers enter into joint ventures with local partners in order to make cars in China. The BMW-Brilliance deal is scheduled to close in 2022, the year the requirement ends.
“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,” BMW CEO Harald Krueger said in a statement.

FASTFACTS

China is BMW’s single largest sales market, with 560,000 vehicles sold there last year.


Saudi finance ministry hosts foreign investors ahead of budget 

Updated 58 min 48 sec ago

Saudi finance ministry hosts foreign investors ahead of budget 

  • Twenty two international investment companies are being shown around some of the Kingdom’s top non-oil based companies
  • Saudi banks such as SAAB, Samba, NCB, Bank AlJazira and Alinma Bank are also in attendance

RIYADH: Saudi Arabia’s Ministry of Finance has kicked off a tour for foreign investors in Riyadh today ahead of the 2020 Budget Forum on Dec. 10.
Twenty two international investment companies from Taiwan, the US, the UK, Malaysia, Indonesia, Japan, Hong Kong, Germany and France have been invited to visit some of the Kingdom’s top non-oil based companies.
The group includes a number of international investment companies, insurers and asset managers, including Goldman Sachs, Mayfair Bank, Etiqa Insurance and Nippon Life Insurance Company among others.
Saudi banks such as SAAB, Samba, NCB, Bank AlJazira and Alinma Bank are also in attendance.
Among the sites visited by the delegation are the Riyadh Metro, where the group got a glimpse of the bus and train systems that are due to launch mid-2020. 
The tour also takes in Al-Turaif UNESCO heritage site, and Qiddiya, the entertainment mega project under development in Riyadh.