BMW mulling electric venture with Great Wall for China – report
German luxury marque BMW is looking into a business venture with Chinese manufacturer Great Wall to produce electric vehicles, according to a new report.
Two unnamed sources “familiar with the matter” told Reuters that BMW is “in discussions” with Great Wall regarding the production of vehicles in the Chinese province of Changshu.
According to the report, one of the sources is an unidentified BMW executive, who declined to be named as they were unauthorised to speak on the topic.
The second person interviewed by Reuters said if the partnership happens, it would not involve petrol- or diesel-powered vehicles – hinting at a focus on electric vehicles (EV).
Above: Great Wall Steed
BMW is China’s second-largest premium brand, behind Audi. According to Reuters, the company’s sales in China grew by 11.3 per cent last year.
Analysts from US finance firm Bernstein believe the venture between BMW and Great Wall would have to exclusively sell EVs due to China’s crackdown on emissions and new combustion vehicle businesses.
“If an agreement were to be reached, we’d expect an arrangement like Denza (Mercedes-BYD), or VW-JAC, Ford-Zotye to be the most plausible outcome, whereby a new brand is used to sell EVs,” they told Reuters, also suggesting new models could be sold under the Mini brand.
BMW already has a joint venture in China with local manufacturer, Brilliance China Automotive Holdings. The company produces a number of models at two facilities in Shenyang, including the China-only 1 Series sedan (above) and long-wheelbase X1 SUV.
Regardless of whether the deal with Great Wall is successful, BMW’s partnership with Brilliance is expected to continue.
For those unfamiliar with the market, foreign carmakers are required to team up with local partners in China.
Above: Mini Electric Concept
It’s also reported that Great Wall recently secured a deal for supplies of lithium, a key mineral in the production of battery packs in electric vehicles. Additionally, rumours regarding Great Wall’s interest in the Jeep brand have been circulating of late – though parent company Fiat Chrysler Automobiles (FCA) has already played down that idea.
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