BMW seeks to Great Wall to develop the Chinese production

BMW is mulling a second joint venture in china to increase production volumes and strengthen its electric vehicle (EV) presence, Reuters reports.

The potential of partnership, which is reported to be with the Chinese car brand Great Wall, will be BMW’s second. The company already has links with Brio to produce its range of cars, including the China-only models, in the country.

Currently, it is a legal obligation to the international brands of domestic partner automobile manufacturer to produce vehicles in China.

It is estimated that the new company aimed to increase both the BMW production volumes and its EV share, that China is preparing to introduce strict quotas on the percentage of plug-in offerings sold by the car manufacturers.

The quotas have been met by calls for clemency, with several car manufacturers believe the goals unattainable.

The cars produced under the BMW and Great Wall deal will be built in the city of Changshu, in the east, and a source close to the subject says only EVs would be produced. BMW is currently the second largest premium carmaker in China after Audi.

What has not been clarified, is whether BMW-only products manufactured in this factory or if the contract involves the addition of a second production plant for the next Mini electric, which is currently scheduled for the production of the brand’s plant Oxford in the united KINGDOM.

A BMW spokesman said: “We do not comment on speculation as a matter of capital. The development of our business with the joint venture BMW Brilliance Automotive will continue as planned and we will continue to invest and develop in this joint venture.

“Based on the success of the cooperation until now, the BMW Group and Brilliance China Automotive Holdings Ltd decided in June 2014 to extend the contract of their Chinese joint venture BMW Brilliance Automotive early. Ten years of the contract is valid until 2028.”

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