BMW, Chinese partner launch financing joint venture
German luxury car maker BMW and Chinese partner Brillance China Automotive will launch a new joint venture to finance BMW sales in the world's biggest auto market, Brillance said on Thursday.
BMW will own 58 percent of the new company, BMW Automotive Finance (China) Co., while the remaining 42 percent will be held by BMW Brilliance Automotive Ltd (BBA), a separate joint venture between the two groups, a statement said.
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 (56 million euros, 73 million dollars), its headquarters in Beijing, and start full operations in the fourth quarter of this year, it added.
The German automobile manufacturer's association VDA said Thursday that with auto markets losing steam in western Europe, emerging markets like China's represented the best hope for future sales growth.
© 2010 AFP