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 venture,” quoting Chinese Premier Li Keqiang in Germany after the deal was signed.

Li also said that VW is in talks with FAW on raising its stake on their joint venture, which is currently a 60-40 partnership between FAW and VW. VW’s other local joint venture with JAC is a 50-50 partnership.

“It would be OK if you want to hold more interest, [as] China is advancing a new round of opening to foreign investments including lifting the limits on foreign ownership in the auto industry,” Li was quoted as saying to VW executives by the State Council’s website.

In the wake of U.S. President Trump’s trade war threats, the Chinese government plans to phase out the 50 percent cap on foreign ownership of local joint ventures. Tesla has already announced a new production facility in Lingang, near Shanghai, that will be fully owned by the Palo Alto-based EV maker – a first for the country.

more photos...

 

  • assassingtr

    Is this is after they’ve already been able to take all their manufacturing intellectual property?

The Grand Tour Has Been Renewed For Season 4, But Its Drastically Changing Formats

Instead of ten hour long episodes, future seasons of The Grand Tour will consist of a handful of big budget specials.

VW Golf R Gets Pumped Up To 470 HP, Takes On BMW M3 And Mercedes-AMG A45

We live in a time where 400+ hp is considered ‘normal’ for a hot hatch, both in stock or modified state.

Tiff Needell Takes A Spin In The All-New BMW 8-Series

Even the diesel-powered 840d is deemed pretty impressive.

Porsche 911 Targa Slips Into TopCar’s Stinger GTR Body Kit

The Russian tuner adds a number of exterior parts, mostly made of carbon, to make this Targa look more special.

Armored Truck Spills Cash On New Jersey Highway, Drivers Go Amok To Grab Money

The chaos resulted in at least two different accidents.

BMW And Porsche Demo Rapid Charger That Can Deliver 62 Miles Of Range In Less Than 3 Minutes

The days of long recharging times for electric vehicles is slowly coming to an end.

The New 2019 Hyundai Santa Fe Offers More SUV For Less Money

Does the new Hyundai Santa Fe’s clever pricing make it the smartest choice in the segment? Let’s find out.

2019 Jaguar XF 300 Sport Arrives In America With 296 HP

For 2019, the Jaguar XF gains an assortment of newly standard equipment including a 10-inch infotainment system and a suedecloth headliner.

Cadillac XT6 Mid-Size SUV Will Probably Premiere At 2019 Detroit Auto Show

The Cadillac XT6 should arrive at dealers next summer, and it will probably be assembled at Spring Hill, Tennessee.

Lincoln Tweet Hints At Return Of Suicide Rear Doors For Upcoming Model

The cryptic tweet follows a report suggesting the Continental could get suicide rear doors in the future.