The BMW Group and the Chinese manufacturer Great Wall Motor today signed an agreement to produce MINI electric vehicles through a new 50:50 joint venture called Spotlight Automotive Limited and based in China. As well as MINI electric vehicles, the joint venture will also manufacture electric vehicles for Great Wall Motor.
The new company is subject to approval from the relevant Chinese authorities and pending the completion of business registration procedures.
Adding to BBA, the jv with Brilliance
Today’s announcement follows that made yesterday by BMW Group on further expanding its highly successful BMW Brilliance Automotive (BBA) joint venture in China with its partner, Brilliance.
In recent years, BBA has become a cornerstone of the BMW brand’s success in its largest market. Around 560,000 BMW brand vehicles were delivered to customers in China in 2017, more than in the next two largest markets, the US and Germany, combined. Two-thirds of all BMW vehicles sold in China last year were produced by BBA. In 2017, China was MINI’s fourth-largest market, with around 35,000 units delivered. This underlines the brand’s additional global potential, which will now be significantly supported through the joint venture with Great Wall Motor.
Two-thirds of all BMW vehicles sold in China were produced by BBA last year. Local production of the new BMW X3 in China started in May as scheduled and the ramp-up in the second half of the year is expected to further accelerate growth in the world’s largest automotive market. The BMW X3 is the sixth BMW model localized in China.
In addition to the two automobile production locations, BBA also runs an engine plant, which includes a battery factory for the electrified BMW brand vehicles produced locally in Shenyang. This is the first battery factory operated by a premium automobile manufacturer in China. Local production of the BMW iX3, the first all-electric core model of the BMW brand, will start in 2020 in Shenyang. The BMW iX3 is also intended for export to markets outside of China.
Under the jv extension agreement signed between BMW Group and Brilliance yesterday, BBA is increasing the capacity of its two local production facilities Tiexi and Dadong in Shenyang, Liaoning Province, to a total of 520,000 BMW brand vehicles in 2019. Furthermore, the all-electric BMW iX3 produced by BBA is planned for export to markets outside of China.
Today BBA already employs over 800 professionals in its R&D facilities, three-quarters of whom are Chinese. In total, BBA employs more than 16,800 associates. Since 2009, BMW Brilliance Automotive has invested more than 52 billion RMB in its plants in Shenyang. The 2 millionth BMW produced in China rolled off the production line in January 2018.
Spotlight Automotive
The joint venture will be located in Jiangsu Province, where both partners will together create a new state-of-the-art production facility.
The joint venture’s activities will focus on the development, procurement and production of electric vehicles for the Chinese market.
The production of future battery-electric MINI vehicles in China, the world’s largest market for electromobility, is a key element of MINI’s continued strategic development within the BMW Group’s Strategy NUMBER ONE > NEXT. Today’s move follows the “letter of intent” signed with Great Wall Motor on 23 February 2018. It is another significant step towards the electrified future of the MINI brand, coming in addition to start-of-production next year of the first battery electric MINI at the brand’s main plant in Oxford.
The joint venture agreement was signed by Wei Jianjun, Founder and Chairman of Great Wall Motor, and Klaus Fröhlich, Member of Board of Management BMW AG for Development. “The strengths and expertise of both companies complement each other well,” said Fröhlich. “Our experience as a pioneer and leader in the field of electrification, coupled with Great Wall Motor’s proven track-record in efficient industrialisation, enables us together to drive the growth of the largest e-mobility market in the world,” Fröhlich continued. “With our joint approach, we can quickly scale up production and increase efficiency in the highly competitive segment of compact electric vehicles.”
“Today’s signing opens a new chapter in Sino-German cooperation,” stated Wei Jianjun. “Great Wall Motor and the BMW Group share a commitment to promote new energy vehicles. With the combined strength of both partners, our new joint venture will accelerate the uptake of electric vehicles,” Wei continued.
There are no plans to set up an additional sales organisation in China for future MINI electric vehicles from this joint venture, as BMW Group is firmly committed to continuing the successful cooperation with the established sales structure and channels in China
Image over the headline.- Wei Jianjun (Founder and Chairman of Great Wall Motor)and Klaus Fröhlich (Member of Board of Management BMW AG for Development).© BMW
