Witnessed by China-Germany government officials, the joint venture contract is entered into by and between GWM Group and BMW.
The joint venture (JV) is named Spotlight Automotive Ltd., with 50 % of shares held by both parties and a total investment of 5.1 billion RMB (approx. USD 780 million).
Based in Jiangsu Province, the JV has an estimated standard production of 160,000 vehicles initially and a potential increase of annual production capacity depending on its future production plan.
The JV provides products and service for the global market.
The cooperation will effectively promote the globalization process of both parties.
The cooperation will greatly promote the development of GWM NEV strategy.
[Beijing/Berlin July 10, 2018] Chinese Premier Li Keqiang and German Chancellor Angela Merkel presided over the fifth round of China-Germany inter-governmental consultation in Berlin. Witnessed by China-Germany government officials, the joint venture contract is entered into by and between Great Wall Motor Company Limited (hereinafter referred to as GWM) and BMW Holding B.V. (hereinafter referred to as BMW).
According to the Contract, the joint venture with 50 % of the shares held by GWM and BMW is named as Spotlight Automotive Ltd., with a registered capital of RMB 1.7 billion (approx. USD 300 million). The registered address in Zhangjiagang of Jiangsu Province and the total investment is RMB 5.1 billion. The Board of Directors consists of six members, in which the chairman is appointed by GWM and the Vice Chairman by BMW, serving for four years. The JV has planned an international advanced vehicle plant with an annual standard capacity of 160,000 vehicles. This is the first BEV (Battery Electric Vehicle) joint venture project of BMW Group worldwide and the bridgehead for the GWM new energy vehicles of opening to the global market.
Jointly Leading Accelerate the New Energy Strategy
Based on multi-round communication and mutual benefits, this commercial cooperation between GWM and BMW complies with the national industry policy trend, and meets the social demands of new energy vehicles featuring energy conservation, environmental protection and high efficiency. Focusing on new energy vehicle field, JV will integrate technology, resource and management advantages of both parties to develop a new generation of BEV.
As one of ten key national development fields in China, “Energy-saving and new energy vehicle” aims at promoting the travel mode centered on low carbon, energy conservation and environmental protection. The cooperation between GWM and BMW effectively responds to the optimization and upgrade of new energy industry in China.
GWM has developed in core fields of new energy vehicles, such as motor, electronic control and power battery, with trial-manufacturing laboratory concerning cells, mechanism analysis, PACK and BMS, battery trial workshop, test center, and analysis center established. Furthermore, new energy technology R&D centers in Seongnam-si, Gyeonggi-do, South Korea and Lower Austria, Austria, built by GWM have developed leading technology with world-class talent resources and domestic companies.
Strong alliances Promote Globalization Process
The cooperation between GWM and BMW is a new example for open-minded cooperation in Chinese auto industry, showing the optimization and integration of global resources. It helps GWM and BMW jointly broaden the international market by integrating their advantages.
As a well-known enterprise, GWM has profound vision and strategy for international market by deeply rooting itself in the local auto market in China. GWM was listed both in Hong Kong as H-shares and in China as A shares respectively in 2003 and 2011. By the end of 2017, the total assets of GWM had reached RMB 110.547 billion. At present, GWM owns 4 brands, namely HAVAL, Great Wall, WEY and ORA, all of which reached more than one million vehicles sales in 2016 and 2017. With rich vehicle R&D, production and operation resources, GWM is full-fledged in R&D and manufacturing fields of traditional power and new energy core parts and components.
BMW, one of world-famous automotive and motorcycle manufacturers, has a history of making cars for 100 years and owns four brands of BMW, MINI, Rolls-Royce and BMW Motorrad, and is also engaged in auto finance and high-end travel service.
This cooperation is a powerful supplement to BMW’s global strategy for new energy vehicles and to the GWM ‘s international strategy, and is a definitely strong alliance of the power. In the future, in-depth cooperation between both parties in brand building, management system, production and manufacture, and technology R&D, will exploit a broader market, thus accelerating the globalization and new energy development.