BMW Sets up Joint Venture in Northeast China

Home>>Business

Last updated at: (Beijing Time) Tuesday, March 18, 2003

BMW Sets up Joint Venture in Northeast China

DISCUSSION

CHINESE

SEND TO FRIEND

The feasibility studies report for setting up a joint venture between BMW and Huachen Auto has been officially approved by related government departments, setting out the most important step of the BMW to localize its production in China, as learned from BMW.

The government approved the joint venture proposal in June 2002, and it will be followed with contract approval and company registration according to examination and approval procedures of Chinese government on joint venture projects.

The BMW-Huachen joint venture will be located in Shenyang, capital of northeast China's Liaoning Province. Production will be kicked off from the latter half of 2003 and the production and sales of BMW series 3, 5 cars will reach 30,000 upon the middle stage of the project.

BMW will hold 50 percent shares of the new company and investment in the project will reach 450 million euros by 2005. During the middle stage of the project the company is to have around 3000 members and will need more auto part suppliers.

The joint venture project laid foundation for BMW's future entry in Chinese market, one of the most important world auto markets in the future, and meanwhile pushed forward BMW's strategic experiment on Asian market, said BMW's chairman.

The company plans to lift its sales on Asian market from current 80,000 to about 150,000 cars in the five years to come. The BMW group set up its office in Beijing in 1994, and sold some 6700 cars in China in 2002.

By PD Online Staff Li Heng

Questions?Comments? Click here

BMW Moves to Expand Market in China

BMW Cars to be Produced in China

BMW Given Green Light to Ink JV in China

The US Must Not Put Pressure On the UN ( 3 Messages)

Saddam Vows to Globalize War if Attacked ( 5 Messages)

China's Z11 Helicopters Get Green Light for Civilian Use ( 5 Messages)

New Premier Comes from Grass Roots ( 2 Messages)

China Hopes War can be Avoided: FM ( 3 Messages)