Signing an agreement with Brilliance China Automotive Holding Ltd. in the amount of more than $4 billion marks German conglomerate BMW as the pioneering automobile manufacturer which was granted a permission by the Chinese authorities to own a controlling stake in the venture company, Bloomberg reports.
BMW is now the majority shareholder (75%) of Brilliance compared to the previous 50%. As a result, the pressure of high tariffs, which were introduced with the start of the US–China trade war, will now be reduced. Such preferences will help increase the manufacturing capacity of the conglomerate in PRC and boost the production of electric vehicles.
Last year, the German automobile manufacturer delivered over 100,000 sports cars to PRC from its factory located in Spartanburg, South Carolina. Thus, the BMW-Brilliance joint venture plans to invest over $3 billion in the creation of new manufacturing facilities in PRC.