2018 BMW 5-Series built by BMW Brilliance Automotive joint ventureTo build cars in China and escape the country's steep tariffs on imports, foreign automakers have had to partner with local firms via 50:50 joint ventures. However, the Chinese government earlier this year laid out a plan to phase out the rule by 2022, thus paving the way for foreign automakers to buy out their joint-venture partners and take home more of their profits. The first to take action is the BMW Group which on Thursday said it intends to increase its stake in a joint venture held with Chinese automaker Brilliance from the current 50 percent to a controlling 75 percent. The move will cost BMW approximately $4.2 billion and is still subject to shareholder approval. BMW also on Thursday signed a contract extension with Brilliance to extend their partnership to 2040 and said the joint venture, known as BMW Brilliance Automotive, will spend close to $3.5 billion in upgrading plants and adding capacity. As a result, … [Read more...] about BMW sets course to buy controlling stake in Chinese joint venture
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BMW, VW First Foreign Automakers To Gain Control Of Their Chinese Joint Ventures
Until now, no foreign automaker could build vehicles in China without forming a joint venture with a local company. Even then, they had to get permission if they wanted to expand and could never possess a majority stake. Well, it looks like things are changing, as BMW and VW are the very first allowed to take control of their Chinese operations. The two German manufacturers were granted permission when they announced they would invest heavily in their local business, Automotive News reports. BMW and Brilliance recently announced the expansion of their annual production at their joint venture to 520,000 vehicles in 2019. VW, on the other hand, agreed to establish a new R&D center at its partnership with Jianghuai Automobile in order to accelerate the development of electric vehicles through its Seat brand in China. China’s State Council reported on its website that BMW will become the first foreign automaker to own “more than 50 percent interest in its local joint … [Read more...] about BMW, VW First Foreign Automakers To Gain Control Of Their Chinese Joint Ventures
BMW, VW will receive early lead in gaining control of Chinese joint ventures
Come 2022, China will officially scrap ownership limits on foreign automakers and the joint-venture agreements those limits require. However, the country has given BMW and Volkswagen an early lead on removing the limits. Both German automakers signed agreements with their joint-venture partners in the presence of Chinese Premier Li Keqiang that will remove the caps ahead of schedule, Automotive News Europe (subscription required) reported Friday. Per China's current timeline, the caps will fade away this year for any foreign-invested shares in electric and hybrid cars. By 2020, the country will remove the cap on commercial vehicles, and finally, passenger vehicles in 2022. The early agreement for VW and BMW gives the automakers a significant head start to take controlling interest in their alliances, funnel new investment, and expand their market share in China. The Chinese auto market continues to grow as other markets begin to plateau; ANE reported light-vehicle sales rose … [Read more...] about BMW, VW will receive early lead in gaining control of Chinese joint ventures
National Oilwell Varco starts joint venture with Saudi Aramco
By Jordan Blum Updated 7:45 am, Friday, June 29, 2018 Photo: Anadolu Agency/Getty Images Image 1of/1 CaptionClose Image 1 of 1 RIYADH, SAUDI ARABIA - MAY 20: (----EDITORIAL USE ONLY MANDATORY CREDIT - "BANDAR ALGALOUD / SAUDI ROYAL COUNCIL / HANDOUT" - NO MARKETING NO ADVERTISING CAMPAIGNS - DISTRIBUTED AS A SERVICE TO CLIENTS----) President and CEO of Saudi Arabian Oil Company Saudi Aramco, Amin H. Nasser (R) and CEO of National Oilwell Varco Clay C. Williams (L) pose for a photo after signing a bilateral agreement, worth 280 billion U.S. dollars, between United States and Saudi Arabia at Al-Yamamah Palace in Riyadh, Saudi Arabia on May 20, 2017. (Photo by Bandar Algaloud / Saudi Royal Council / Handout/Anadolu Agency/Getty Images) less RIYADH, SAUDI ARABIA - MAY 20: (----EDITORIAL USE ONLY MANDATORY CREDIT - "BANDAR ALGALOUD / SAUDI ROYAL COUNCIL / HANDOUT" - NO MARKETING NO ADVERTISING … [Read more...] about National Oilwell Varco starts joint venture with Saudi Aramco
Turkey’s Homegrown Car Moves A Step Closer With Joint Venture
Turkey really wants to build its own car and to do so, five local companies have joined forces to create the “Joint Venture for Turkey’s Car Industry and Commerce Co.” The joint venture involves Anadolu Group, BMC, Kök Group, Turkcell, and Zorlu Holding and sees each company with a 19 per cent share in the venture while five per cent is owned by the Union of Chambers and Commodity Exchanges of Turkey. On Saturday, the joint venture announced the appointment of Mehmet Gürcan Karakaş, a former top global executive from Bosch, as the automaker’s chief executive. “I was born in Turkey, grew up here, went to college in this country, and took my first step into business life in Turkey. “With this project, I am happy to have the opportunity to transfer my knowledge and experience in the global market to my country. Rest assured, Turkey will produce a competitive brand in the global market,” Karakaş said. President of Turkey Recep … [Read more...] about Turkey’s Homegrown Car Moves A Step Closer With Joint Venture