Great Wall Confirms BMW Talks About Mini Production in China

Great Wall Motor Ltd. confirms reports that it is in talks about forming a joint venture with BMW AG to make electric- and piston-powered Mini small cars in China for the local market.

Great Wall describes the negotiations as preliminary and notes the companies have not agreed to form a venture. The Chinese company is the only major carmaker in the country with no foreign partner.

BMW currently makes most Minis at its factory in Oxford, England. The company also sources some Mini models through a deal with contract assembler Nedcar BV in Born, Netherlands. The Oxford facility is being readied to add an all-electric Mini variant in 2019.

Bloomberg News notes that a deal with Great Wall would help BMW bolster Mini sales in China. A partnership also would give BMW a new production source if tariffs on British-made Minis go up after the U.K. leaves the European Union in 2019.