GWM-BMW JV given approval for establishment of foreign-invested enterprise

Shanghai (Gasgoo)- Spotlight Automotive, the joint venture between Germany's BMW Group and China's Great Wall Motor (GWM), has been granted China's governmental approval for establishment of enterprises with foreign investment, the Baoding-based automaker announced on December 15.

Around half a month ago, two automakers celebrated the first spade cut of the significant project in Zhangjiagang, marking the first joint venture between foreign and privately-owned automakers in China would be soon established.

The groundbreaking ceremony was held only a week after the joint venture was given the green-light to produce internal combustion engine-powered vehicles (ICEVs) and conduct R&D activities for all-electric PVs. However, the approval is not available to BEV production.

Through the joint venture, both parent companies planned to co-build a global manufacturing base and a R&D hub for BMW-branded NEVs, and centers focusing on producing key components like engines and transmissions and developing carbon fiber-enabled lightweight business. Construction of those facilities are set to start in 2020 and expected to be completed two years later.

Involving a total investment of RMB5.1 billion, Spotlight Automotive is designed to feature a capacity of 160,000 vehicles on an annual basis. As well as MINI BEVs, the joint venture would also produce new models for Great Wall Motor, said BMW Group.

It is worth noting that BMW (Netherland) Holding Ltd, the joint venture's parent company on behalf of BMW Group, also possesses 50% stake in BMW Brilliance Automotive Ltd.

As part of GWM's global strategy, Spotlight Automotive not only targets the domestic market, but aims to extend its outreach outside China. In the future, products yielded by the joint venture will be sold via different sales channels based on brands (photo source: Great Wall Motor).