Although the joint venture contract between BMW and Brilliance has been four years since its expiration, the two sides have laid out the next phase of development plan in advance in order to further deepen cooperation. The reporter was informed last week that BMW and Brilliance have completed the second phase of the joint venture renewal. Ange, president and CEO of BMW Group Greater China, said in an interview with reporters last week that the new joint venture contract will be extended to 2028.

Cooperative upgrade renewal for 10 years

"Our cooperation with Brilliance has been 11 years. In the past 11 years, our cooperation has been very good and we have achieved mutual wins." Ange said that based on mutual trust and prospects for future development, BMW and Brilliance decided to lay out future development strategies ahead of schedule. Recently, the joint venture renewal has been completed. It is understood that the joint venture will last for about 10 years. This means that the joint venture contract between Brilliance and BMW will remain until 2028 before the updated cooperation plan is finalized. As the above news was not officially released, Ange did not disclose the specific details. According to the “Memorandum of Cooperation between BMW Group and Brilliance Group” signed by the two parties in March this year, BMW Brilliance will complete investment in new products, new technologies and capacity expansion, as well as cooperation in new energy vehicles and other aspects.

Ange said that these plans have been carried out step by step, and some projects have been implemented in advance. Among them, the BMW Brilliance R&D Center was established last year. The joint venture independent brand promised to implement the more localized strategy in the future also released the first product “Zeno Concord 1E” last year. At the same time, the new engine plant built by BMW Brilliance next to the Tiexi plant is scheduled to start production in 2016.

Will maintain annual growth of more than 10%

The market performance of the joint venture for 11 years has given sufficient confidence to the Ange and BMW board of directors. According to data provided by BMW, the BMW Group continued to maintain steady growth in the Chinese market in 2013, with a total of 390,000 BMW and MINI vehicles sold, an increase of 19.7%. In the first five months of this year, the growth rate was 25%. The market has grown rapidly, and the capacity of BMW Brilliance has risen rapidly in recent years. As of the end of 2013, BMW Brilliance has achieved a production capacity of 300,000 vehicles.

With the continuous improvement of outlets and products and production capacity, Ange is full of confidence in the future Chinese market. “Currently China’s GDP growth is around 7.5%, the general auto market will maintain a level similar to GDP growth, while the luxury car market is growing faster than the overall auto market. The average annual growth rate of BMW from now to 2020 is expected to be 10%; Last year, the total sales volume of BMW and MINI in the mainland market exceeded 390,000. If calculated at such a growth rate, the annual sales volume will be twice that of the current year after 9 years."