The BMW group, together with its partner Brilliance China Automotive Holdings Ltd (CBA) announced it would extend its joint venture contract for another 22 years (from 2018 to 2014). The joint venture, BMW Brilliance Automotive (BBA), will invest in the expansion of its production capacity, with plans to drive dynamic growth in the world's largest automobile market. 

The BMW Group intends to increase its stake in BBA from 50 percent to 75 percent. This transaction is subject to the approval of the relevant authorities and the consent of the CBA Shareholders' Meeting.

At the same time, the joint venture also announced an investment of more than three billion euros in new and existing plant structures in Shenyang over the coming years. In Tiexi, a new plant will double the site's capacity, while extensive remodeling and expansion measures will target the neighboring plant in Dadong. Production capacity there will remain the same, but the structure of the plant will gradually be expanded for future BMW model variants and the expected market growth. As a result, the total annual production capacity of BMW automobiles at the BBA plants will gradually increase to 650,000 units from the early 2020s, creating 5,000 new jobs.

“We are consistently following our growth strategy for China. With continuous investment, as well as the development and production of electric vehicles, we underline China's importance as a dynamic growth market for us,” said Harald Krüger, Chairman of the Board of Management of BMW AG. “Our success story goes hand in hand with the success of the joint venture BBA. Together with our partners, we contribute to the sustainable development of the Chinese market,” he added.

“BMW Brilliance Automotive is a unique success story and provides an outstanding example of a strong partnership built on trust,” added Yumin Qi, Chief Executive Officer of Brilliance Automotive Group Holdings. “This joint success is also driving economic development in Liaoning Province.”

“Today, as well as celebrating 15 years of a strong and reliable partnership with Brilliance, we are also laying the foundation for further growth of the BMW brand in China,” stated Dr. Nicolas Peter, member of the Board of Management of BMW AG, responsible for Finance.

The BMW Brilliance Automotive joint venture was founded in 2003. Over the past 15 years, it has become one of the most successful premium vehicle manufacturers in China, encompassing production and sales of BMW automobiles in China, as well as local R&D. In 2017, the BBA automotive plants in Tiexi and Dadong produced almost 400,000 vehicles for the Chinese market – an increase of around 30 percent year-on-year.

Since 2009, BMW Brilliance Automotive has invested more than 52 billion yuan in its plants in Shenyang. In total, BBA employs more than 18,000 employees. Since the founding of the joint venture, the supplier network has expanded to more than 350 companies. More than 80 suppliers have set up locations in Liaoning Province.