BMW eyes joint venture with China’s Great Wall

SHANGHAI/BEIJING: German luxury automaker BMW is looking to form a joint venture with Great Wall Motor, a source familiar with the matter said, sending shares in the Chinese automaker up by nearly a fifth yesterday.

The automakers are considering the possibility of opening an assembly plant in the eastern Chinese city of Changshu, a BMW executive said, while declining to say what type of vehicles would be put together there.

A venture with Great Wall would be BMW’s second in China, the world’s largest auto market. It has a joint venture with local carmaker Brilliance China Automotive Holdings. Foreign carmakers have to operate in the market with local partners.

“We are in discussions with Great Wall about setting up a JV to produce cars in Changshu,” said the executive, who was not authorised to speak on the matter and declined to be identified.

“I don’t know how far along we have gone nailing this deal,” or whether the two companies have official central government approval for the venture, the person said.

A BMW spokesman in China did not provide an immediate comment when contacted by Reuters. A Great Wall official declined to comment.

Foreign automakers have recently announced a raft of investments and tie-ups in China, especially in electric vehicles. – Reuters