BMW Group and Great Wall Motor, a joint venture of automobile beam project was officially launched in Zhangjiagang City, Jiangsu Province, which is not only the Great Wall Motor, a milestone in the history of BMW, the Chinese auto industry is also a landmark event.
Since the beam to create a plurality of first car, light car is a joint venture after the first open shares than the Chinese automotive history; the first 50:50 joint venture share ratio; the first from the birth of the global sales market of the joint venture; the first private joint venture automobile companies. The Chinese first, just to come up with one, you can also load the annals of the development of China’s automobile. Therefore, floor beams car project, the Great Wall is not only a successful joint venture, BMW, and it is a victory for China’s auto industry.
1. The joint venture equity ratio of 50:50 What does it mean?
auto stocks than the maximum foreign investment limit not exceeding 50 percent, from the earliest 1994 by the State Council issued the “Automotive Industry Policy”, chapter VI Article 32 “production car, motorcycle joint venture vehicle and engine product, the proportion of Chinese joint-stock cooperative enterprises shall not be less than 50 percentage. ” Do so in order to ensure that the interests of the Chinese side.
2018, China relaxed the market access, especially in the automotive industry to limit foreign investment. After the promulgation of the policy, the BMW Group BMW 3 billion euros to increase investment, shareholding ratio increased to 75 percentage Brilliance reduced to 25 percentage. Tesla set up in Shanghai 100 Percentage owned factories.
In the joint venture, the majority of independent car prices are in a weak position. Under the sales volume and pressure to survive, once the self-car prices into submission, many independent car prices probably will become foreign foundries. This booming Chinese auto industry, is obviously a pot of cold water.
However, the Great Wall Motor and BMW is 50:50, which means that both parties have the same right to speak, but also illustrates the BMW recognized by Great Wall Motor’s strength in production and technology. Great Wall is also eyeing BMW automotive technology, production management, global operations experience.
2. The light beam is not a BMW car foundries?
car beam with the previous joint venture or different production models will not be the BMW. Before there is that the production car is BMW’s MINI pure electric vehicles. But this is not an accurate answer. At present, although the official did not explicitly models, but the first cars will use three beam design of pure electric vehicle, the battery capacity of 50.5kWh, WLTP condition mileage up to 400km, comparable to the Audi e-tron of 470km (NEDC conditions), the new car will be officially released in June 2023.
MINI electric version of the car will be a beam of the second vehicle, the mileage will reach more than 500km, and its quality will be the same MINI. Therefore, the beam will be BMW’s production models, will produce Great Wall’s models.
3. In the Great Wall 4S shop can buy quality BMW car
as a newly established the joint venture company, the beam does not create a separate sales channel. MINI brand will continue to be sold within the BMW Group sales channels, and the joint venture brand models will be sold in Great Wall Motor original channel. The car beam will focus on the development and production levels. In other words, in the future, Great Wall Automobile 4S shop, consumers can buy the same quality of BMW’s electric car.
the use of existing sales channels, which in the previous joint venture is relatively rare, such as we are familiar with the recent Volkswagen Jetta’s independence as a brand, but also to re-establish a new sales channel.
4. Global Sales, Great Wall Motor to accelerate the process of globalization
Although the Great Wall Motors has to go overseas in Russia the construction of the factory, and announced the future will enter the European market. But compared to BMW, the luxury brand is still a lack of operational experience in the global market, which is BMW have the advantage. Future, the beam will be produced for the whole carBall market. Great Wall Motor will not only help improve the conduct in technology, production, Great Wall Motor will help quickly to overseas markets.
Summary:
official landing beam car project, open a new journey BMW Group and Great Wall Motor co. I believe in the BMW Group and Great Wall Motor’s technology to produce a synergistic cooperation of the beam car project will get the combined effect of “one plus one is greater than two”.