With China slowly loosening regulation on foreign investments, investments and more JV are expected. The trade war with the U.S. is pushing Beijing to play nice with foreign investors.
On Thursday, BMW disclosed it was in the process of developing a joint venture with a Brilliance, a Chinese firm.
The German carmaker did not confirm whether it would raise its stake in the BMW Brilliance Automotive (BBA).
“We cannot comment in detail on the state of our ongoing discussions with our partner Brilliance at this point in time,” said BMW.
Manager Magazin, a German business magazine had reported citing a source familiar with the plan as saying, BMW was to increase its stake in BBA to at least 75%, up from 50%.
As per a Bloomberg news report, which cited a source familiar with the matter at hand, a new ownership structure will soon be unveiled.
The development comes in the wake of China loosening foreign investment curbs in its automotive industry and other sectors.
China aims to remove foreign ownership limits for passenger car manufacturing by 2022.
As per Manager Magazin’s report, BMW’s CEO Harald Krueger and Brilliance’s Chairman Yumin Qi had agreed on the stake hike by BMW during Premier Li Keqiang visit to Germany this week.
On Monday, BMW had announced a series of agreements with its Chinese partners, which include increasing production capacity at BBA; however it had not dropped a hint or mentioned any plans to increase its stake in the joint venture.