Brilliance Auto, BMW seek possibility of co-producing more BMW’s models
Shanghai (Gasgoo)- Brilliance Auto Group Holdings Co.,Ltd. (Brilliance Auto), a controlling shareholder of BMA's main Chinese partner Brilliance China Automotive Holdings Limited (Brilliance China), announced on Feb. 9 it intends to expand the cooperation with BMW to co-explore the possibility of producing more BMW's vehicle models in Shenyang, where the German auto giant's biggest manufacturing base is located.
Photo credit: BMW Brilliance
Brilliance Auto also noted it signed a memorandum of understanding (MoU) with the Liaoning Provincial Development and Reform Commission and BMW AG on Feb. 5. Under the MoU, every cooperative projects and relevant transactions between two parties should be approved by all the interests of creditors, bankruptcy administrators and the court as Brilliance Auto has entered into the bankruptcy reorganization procedure.
Brilliance Auto formally went into the bankruptcy reorganization procedure in last November after the court decided on to accept an application filed by a creditor.
The restructuring only involved the business of the group's self-owned brand, while its public subsidiary and joint ventures with BMW and Groupe Renault all stayed out of the issue, according to Brilliance Auto. The group said it was expected to be reborn upon completion of the restructuring, and it would try its best to recover losses of creditors. Besides, BMW Brilliance Automotive (BBA), a joint venture between BMW and Brilliance Auto, would still serve as a stable profit source for Brilliance Auto and roll out more new products in the future.
BMW said in 2018 it would pay €3.6 billion ($4.275 billion) in 2022 to increase its stake in BBA to 75% from 25%, and both BMW and Brilliance China Automotive Holdings had signed a corresponding agreement.
The extended contract is valid from 2018 to 2040, and is expected to lead to a further expansion of production capacity in the world's largest auto market.
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