When Chinese Premier Li Keqiang visited Germany last week, BMW Group and Volkswagen Group each signed deals pledging to invest more in their China joint ventures.
And the German automakers obtained something in return -- the opportunity to gain control of local joint ventures before other foreign peers.
What the Chinese government promised the companies was undisclosed in the statements BMW and VW released under new agreements with their Chinese partners, but the State
Founded in May 2003, BMW Brilliance Automotive Ltd. is a joint venture between the BMW Group and Brilliance China Automotive Holdings Ltd. Business operations include production, R&D, sales, after-sales services and purchasing of BMW automobiles in China. BMW Brilliance has a state-of-the-art production base in Shenyang, Liaoning Province – an industrial heartland of China – and has been the top taxpayer in Shenyang for eleven consecutive years. It has a branch company in Bei
How fast that revolution will unfold is the source of much dispute and uncertainty. And it matters a great deal to oil demand, electricity demand, greenhouse gas emissions, air pollution, and global trade flows. In many ways, questions around EVs parallel questions around renewable energy. They have both been consistently underestimated. If they continue beating expectations, revolution is nigh. But there’s also a lot of hype, wildly conflicting projections, and plenty of ris
Considering these disparate pressures on costs, there is no easy formula that OEMs or suppliers can use to improve their return on capital. The solution will likely come from a combination of actions. Part of the answer lies in consolidation, which reduces industry capital requirements by eliminating competition and combining two manufacturing and design footprints into one. To a degree, these goals explain 2016’s robust supplier M&A volume, continuing the trend of the previo
Germans automakers - Audi, BMW, Mercedes - Porsche - continue to dominate China's 1.8 million million per annum luxury market. They take just under 80% of all premium sales. But Cadillac and Lincoln are gaining traction as fresh alternatives to the ubiquitous German marques. GM produces Cadillac XT5s, ATSs and other sedans at a new billion-dollar plant in Shanghai with its Chinese partner the Shanghai Automotive Industry Corporation. Lincoln imports its full set of offerings
Here’s what the world looks like to a car guy in Detroit right now: In the U.S. new regulations are cranking up costs while cautious car buyers creep back into showrooms. China’s once-hot sales are cooling–fast. Europe is a total basket case, with too much production capacity and an allout price war. Carmakers from General Motors and Ford Motor to Volkswagen and Daimler warn of difficult times ahead. Market conditions, says VW Chief Executive Martin Winterkorn, have become “n