In order to finance BMW sales in the world's biggest auto market, BMW and Chinese partner Brilliance China Automotive will launch a new joint venture.
BMW will own 58% of the new company, BMW Automotive Finance (China) Co., while the remaining 42% will be held by BMW Brilliance Automotive Ltd (BBA), a separate joint venture between the two groups, the companies announced on Sept. 16.
The new company "will provide a variety of financial services, including retail and wholesale finance, as well as leasing services to support sales of BMW sedans by BBA in China," the statement said.
The new joint venture will have registered capital of 500 million Chinese yuan (US$73 million), its headquarters in Beijing, and start full operations in the fourth quarter of this year.
The German automobile manufacturer's association VDA said on Sept. 16 that with auto markets losing steam in western Europe, emerging markets like China's represented the best hope for future sales growth.
Copyright Agence France-Presse, 2010