Brilliance China to boost production at 2nd BMW plant

According to Wu Shaoan, chairman of Brilliance China Automotive Holdings Ltd, the carmaker plans to come to an agreement soon with joint venture partner BMW AG to build a second BMW production plant in China.

Brilliance China and BMW agreed last month to expand the joint venture's annual production capacity to 50,000 to meet demand in the next one to two years, he said. Brilliance China will use existing capacity at its minibus plant for the output increase.

He said the company is under talks with BMW to construct a second BMW production facility. He expects to reach an agreement in the next two to three months and the planned output for the new facility or the amount to be invested will be revealed by then.

Brilliance China said it sold 85,000 sedans and minibuses in the first five months this year, an increase of more than 70 percent from the year-earlier period. Sales during the period accounted for 42.5 percent of its target of 200,000 vehicle sales this year. It sold 128,526 vehicles last year.

Brilliance China also sold 13,500 BMW cars during the period, up 69 percent from 8,000 units sold in the first five months of 2006.Wu said sales this year of BMW cars assembled in China may surpass 30,000 units — the joint venture's designed capacity.