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April 02, 2003
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This Week:

• The All-New 2004 BMW 5 Series

• 3200 Deposits taken for the new Bentley Continental GT

• GM's New 3.6L V-6 VVT To Debut In 2004 Cadillac CTS

• Chrysler Group Reports U.S. March Sales

• PSA Peugeot Citroën Porto Real Plant in Brazil To Start Citroën C3 Production

• Renault presents new-generation particulate filter

• Toyota To Unveil Second Generation Prius And Camry Solara At The 2003 New York International Auto Show

• Volkswagen do Brasil celebrates its 50th anniversary

• GM Reports March Sales Of 391,752, Down 3 Percent

• BMW Group and Brilliance Sign Joint Venture Contract for Planned Production in China

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BMW Group and Brilliance Sign Joint Venture Contract for Planned Production in China
 

Munich / Beijing - The BMW Group and Brilliance China Automotive Holdings Limited today signed a contract for a production and distribution joint venture in China at the Great Hall of the People in Beijing. The signing paves the way for the planned local production of BMW automobiles in Shenyang, the capital of Liaoning Province in the Northeastern part of the People's Republic of China. The contract was signed by Dr. Helmut Panke, BMW AG's Chairman of the Board of Management, together with Mr. Xiao An Wu, Chairman of Brilliance China Automotive Holdings Limited. Top ranking officials from relevant ministries in Beijing, Governor Bo Xilai of Liaoning Province, German Ambassador Mr. Broudré-Gröger and senior executives from both parties witnessed the signing of this milestone contract.

The written approval of the jointly prepared feasibility study was received from the State Development and Planning Commission on March 14, 2003. The final stage in the procedure leading to the official foundation of the joint venture is the approval of the joint venture contract and the granting of the business license by the government authorities.

The joint venture will engage in the production, sales, and aftersales service of premium automotive products of the BMW Group. The start of production is planned for the second half of 2003. In the medium term, an annual production of around 30,000 BMW 3 Series and 5 Series vehicles is envisioned.

In Shenyang, the joint venture will incorporate essential parts of the new plant built in 1999 by Brilliance Auto, expanding these local operations into a full-fledged production facility in line with the high BMW Group standards of quality worldwide.

The BMW Group and its Chinese counterpart each will hold a 50% share in the joint venture. A total of 450 million Euros is to be invested by 2005. In the medium term, the joint venture will employ approximately 3,000 staff. The local supplier industry is continuously being expanded. For the first generation of vehicles produced in China, the expected local content will be approximately 40 percent. The dealer network will be adapted continuously to the production volume.

The BMW Group regards the joint venture as a new milestone in its process of internationalization. On the basis of its ongoing market offensive, the company is consistently strengthening its global presence and strategically opening up new markets, particularly among the rapidly growing markets in Asia.

Today, the sales network of the BMW Group consists of 27 subsidiaries and some 3,000 dealerships around the world. Smaller markets are currently served by more than 100 importers. The BMW Group is represented in over 120 countries on all five continents. In addition, the company operates 23 production and assembly plants in 14 countries, including five in Asia (Malaysia, Vietnam, the Philippines, Indonesia and Thailand). No other premium manufacturer has recourse to such an internationally-oriented network of production and sales.

With the joint venture in China, the company is adding a central pillar in Asia to this network, hence consistently implementing its Asia strategy. Over the next five years, the company is planning to increase its annual sales in Asian markets from around 80,000 to 150,000 units.

The company is continuing on a path of ongoing growth in China-customer deliveries increased in 2002 by 41.4 percent to 15,500 vehicles (in the Chinese mainland, Hong Kong and Taiwan markets). Following the USA and Germany, these markets have now become the third largest sales region for the 7 Series in the 2002 financial year. In the first quarter of 2003, the BMW Group expects a sales volume of around 4,400 BMW and MINI vehicles in Greater China, an increase of nearly 30% compared to the equivalent period 2002. The BMW Group anticipates a continuing upward trend particularly in the premium segments in China in the years to come.

Brilliance is convinced that its partnership with the BMW Group is an important move in its strategy to transform the company into a fully-fledged automobile manufacturer in China. The company believes the Chinese automobile industry will play a critical role in the future development of the global car market.

(March 27, 2003)