Report: BMW to Take Majority Stake in China JV

BMW AG plans to increase its stake in its Chinese joint venture with Brilliance Automotive Group Holdings from 50% to as much as 75% Manager Magazin reports.

This would make BMW the first foreign to hold a majority stake in a Chinese carmaking venture. Last month China said it would begin eliminating the 50% cap on foreign ownership for such operations on July 28.   

Brilliance currently owns 40.5 % of the BMW Brilliance Automotive (BBA) venture, with the remaining 9.5% held by Shenyang City. BMW and Brilliance declined to comment on the report.

Chinese Prime Minister Li Keqiang and German Chancellor Angela Merkel met with business leaders—including BMW CEO Harald Krueger—earlier this week in Berlin to discuss investment opportunities in China. Several deals were announced during the summit, including a €1 billion ($1.2 billion) plan to hike BBA’s production capacity 16% next year to 520,000 units. BBA produces a variety of cars and SUVs at its two assembly plants in Dadong and Tiexi.