Great Wall to build MINIs in China

Rodiano Bonacci
Ottobre 13, 2017

"But producing electric cars will help BMW to meet its quota now that China demands every carmaker in the country. produce a certain number of such cars starting from 2019".

The German company is discussing outsourcing production of the vehicles to Great Wall Motor Co, China's biggest SUV maker, and the possible export of Mini brand cars from China, said the people, asking not to be identified as the deliberations are private.

A venture with Great Wall, whose Hong-Kong listed shares leapt 20 percent on the news, would be BMW's second in the world's largest auto market, where foreign carmakers have to team up with local partners.

BMW's China sales grew 11.3 percent previous year.

Vehicle manufacturers have recently announced a raft of investments and tie-ups in China.

However, BMW Group is facing the same financial headwinds as most other automakers as they transition to electrification.

"If an agreement were to be reached, we'd expect an arrangement like Denza (Mercedes-BYD), or VW-JAC, Ford-Zotye to be the most plausible outcome, whereby a new brand is used to sell EVs", they told Reuters, also suggesting new models could be sold under the Mini brand.

Brilliance China Automotive Holdings, which makes cars in a venture with BMW, rebounded 4.9% at 10.01am in Hong Kong after falling 2.1% on Wednesday. Shares in Brilliance fell on Wednesday. Sergio Marchionne, CEO of FCA said his company won't consider selling Jeep as a separate entity and rejected the idea of making a deal with Chinese rival Great Wall Motor Co, reports Bloomberg.

Regardless of whether the deal with Great Wall is successful, BMW's partnership with Brilliance is expected to continue.

Thus far neither automaker has officially commented on the reports.

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