Brilliance Auto denies possible acquiring by FAW

Shanghai, August 20 (Gasgoo.com) An earlier report said that an insider of FAW said the company is set to acquire Brilliance Auto, a Chinese partner of BMW, but an executive of Brilliance denied this report yesterday, adding that Brilliance Auto has no restructuring plans in the near future, according to the Beijing News.

"It is impossible for FAW to buy out Brilliance Auto," said the Brilliance executive to the reporter. "Although FAW has the desire to acquire it, Brilliance Auto has worked out its own mid- to long-term targets for product development and sales, and therefore it has no plans for restructuring in the near future." In fact, Brilliance turned losses to profits last year by doubling its sales and now it is carrying out its new "five-year plan."

However, sources from FAW insisted that FAW's top management are very interested in buying Brilliance and its new general manager Xu Jianyi, with the support of FAW's most top executives, is actively pushing forward this plan. But the cooperation has to resolve the issue of Brilliance BMW, a joint venture which will soon start construction of its second production facility. It will be awkward for BMW and its major rival Audi, a partner of FAW, to be produced under the same roof in China.
 
An industry analyst said that giant FAW aims to sell one million own-brand homemade vehicles in 2010, while Brilliance Auto currently has annual sales of 300,000 vehicles of Brilliance Jinbei, Brilliance Zhonghua and Brilliance BMW brands combined together. The acquisition of Brilliance Auto, if possible, will greatly boost FAW's capacity and sales, and will add an important division to FAW.