Shenyang —Germany's BMW said it would take majority control of its main China joint venture for €3.6bn, the first such move by a global car maker as Beijing starts to relax ownership rules for the world's biggest vehicle market. The luxury car maker will lift its stake in its venture with Brilliance China Automotive to 75% from 50%, with the deal closing in 2022 when rules capping foreign ownership for all vehicle ventures are lifted. The move will likely spur BMW to shift more production to China, helping boost profits amid a whipsawing trade war between Washington and Beijing that has raised the cost of BMW importing cars manufactured at its South Carolina plant. The deal also marks a milestone for foreign car makers, which have been capped at owning 50% of any China venture and have had to share profits with their local partner. "We are now embarking on a new era," BMW CEO Harald Kruger said in a speech in the northeast Chinese city of Shenyang where the joint venture is based. H...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now