BMW to gain 75% stake in Chinese JV as future looks rosy for foreign car makers
China is starting to relax ownership rules for the world's biggest vehicle market, which is likely to spur BMW to shift more production to China, helping to boost profits
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...
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