New BMW Great Wall Joint Venture is preparing for growth

BMW Great Wall Joint Venture

About the BMW Great Wall Joint Venture – China as biggest growth driver for BMW

Out of 2 million cars delivered to BMW customers in 2017, 560.000 cars were sold to China. This is more than the next two biggest markets (DE and USA) combined. The Mini brand sales increased by 15% (compared to 3.2% worldwide) in China. The new BMW Great Wall Joint Venture will continue to fuel this impressive growth.

Given the significance of China to the BMW brand, it is easy to say that

The future of mobility is autonomous and electric AND will be shaped by Chinese technology and Chinese customer preferences.

 

BMW testing autonomous driving technology near Munich

BMW testing autonomous driving technology near Munich in early 2018

 

It’s deal time – Premier Li Keqiang is on historic Germany trip

Chinese premier Li Keqiang is visiting Germany these days and a lot of important deals are made. One of the most interesting ones is definitely the new joint venture (JV) of BMW with Great Wall. This is already the 2nd joint venture for BMW in China, the other one being with Brilliance (recently extended).

Here are the facts:

  • A new joint venture (JV) named Spotlight Automotive Ltd. with Chinese car manufacturer Great Wall Motor Company Limited.
  • Great Wall is China’s largest SUV and pickup manufacturer.  At present, Great Wall owns 4 brands, namely HAVAL, Great Wall, WEY and ORA, all of which reached more than one million vehicles sales in 2016 and 2017.  They recently introduced their own premium car brand, called WEY  (http://www.gwm-global.com). 
  • The joint venture’s aim is to produce ELECTRIC Minis for China. With production based in Jiangsu Province, the JV has an estimated standard production of 160,000 vehicles initially and a potential increase of annual production capacity depending on its future production plan.
  • In the JV 50 % of shares are held by both parties and a total investment of 5.1 billion RMB (approx. USD 780 million) was announced.
  • The Board of Directors consists of six members, in which the chairman is appointed by GWM and the Vice Chairman by BMW, serving for four years.

 

BMW Great Wall Joint Venture

The luxury brand “WEY” of Great Wall Motor Company

BMW Great Wall Joint Venture

The affordable SUV brand HAVAL of Great Wall – Haval H6 sport shown in the picture

 

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About: I am Dr. Thomas Reinbacher an independent adviser and freelance consultant based in Germany and China. In the past I was: engagement manager at McKinsey and Company; Computer scientist (PhD, Graduated sub-auspiciis presidentis ); visiting scientist NASA Ames Research Center at Silicon Valley. I lived, studied (ZheJiang University 浙江大学) and worked for about 3 years in China (NanJing, HangZhou, BeiJing), and I am fluent in Mandarin.

Disclaimer: This article on BMW Great Wall Joint Venture is provided as is and reflect my personal opinions.