BMW and Brilliance Extend Cooperation for 10 More Years

BMW-Brilliance 1 photo
Photo: Original image by autoevolution
BMW extended its cooperation agreement with its Chinese partner, Brilliance, for another 10 years according to sources inside the Beijing DPA press agency quoted by German newspaper ‘Die Welt’.
The current agreement would’ve expired in 2018 but, since China became BMW’s largest market, the company decided not to wait until then to prolong its deal and offered its Chinese partner a new contract until 2028.

It might seem weird at first, that the Germans are so keen on keeping Brilliance close, especially after the Chinese company decided to copy some of BMW’s patents and use them in their own cars. However, the communist legislation forces foreign companies to join efforts with a local company in order to do business in their country.

The terms of the new deal have been kept away from prying eyes. However, BMW officials, like CFO Friedrich Eichiner, said that the new contract has been signed as an extension to the success the two companies already recorded in China.

The two have been working together since 2003 and operate two separate auto plants and an engine plant. Another engine factory will be finished in 2016 as it is currently being built.

However, tightening CO2 regulation could deny BMW and Brilliance the success they are looking for. The government is looking for ways of reducing smog above their biggest cities, one of them being releasing a limited number of license plates. Sure, EVs would not be included here but since the i3 is not yet available in China, it car barely help BMW out. Deliveries of the all-electric car will begin in this Fall.

Until then, BMW sales in China are still rising, helping out with the 2 million target the company set initially for 2016 and then for this year. So far, the Germans sold 184,823 cars in the communist country alone so far this year, a 24.6 percent growth compared to last year. Speaking of which, in 2013 the Germans sold no less than 391,713 units, another record-breaker at its time.
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