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China: First Foreign Car Company Getting Majority in a Joint Venture BMW will own 75%

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  • China: First Foreign Car Company Getting Majority in a Joint Venture BMW will own 75%

    English:

    https://www.bloomberg.com/news/artic...ith-brilliance

    German:

    http://www.manager-magazin.de/untern...a-1217975.html


    BMW also founded a second JV with Great Wall to build an electric Mini in China.

  • #2
    a foothold in the car-sector of china, a population of 1.4 billion.. lets say only 30% are able to buy a car.. and only 10% would choose to ride a brilliance.. still a whopping 140 mil. and in addition to that, just think of all the maintenance, spare parts etc.

    bmw will own 75% of a jv?

    germoney..
    Last edited by heiliger_geist; 12-07-2018, 06:16 AM.

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    • #3
      Originally posted by heiliger_geist View Post
      a foothold in the car-sector of china, a population of 1.4 billion.. lets say only 30% are able to buy a car.. and only 10% would choose to ride a brilliance.. still a whopping 140 mil. and in addition to that, just think of all the maintenance, spare parts etc.

      bmw will own 75% of a jv?

      germoney..

      https://www.best-selling-cars.com/ch...ury-car-sales/

      No need to assume, it is already reality. Germans already have a foothold in China. In 2017, Germany's Mercedez, BMW, Porsche, Audi, and VW sold four times more cars in China than in Germany or six times more cars than in US. America's GM also sold more cars in China than in US. Americans will be left out...no tariffs are needed to accomplish this.

      Tesla is also building a factory that can produce 500,000 cars a year in China.

      China built this huge market, and we will make you pay to enter it.

      Comment


      • #4
        Originally posted by pla View Post


        https://www.best-selling-cars.com/ch...ury-car-sales/

        No need to assume, it is already reality. Germans already have a foothold in China. In 2017, Germany's Mercedez, BMW, Porsche, Audi, and VW sold four times more cars in China than in Germany or six times more cars than in US. America's GM also sold more cars in China than in US. Americans will be left out...no tariffs are needed to accomplish this.

        Tesla is also building a factory that can produce 500,000 cars a year in China.

        China built this huge market, and we will make you pay to enter it.

        Are Chinese cars selling or just foreign cars?

        Comment


        • #5
          Originally posted by RobertKLR View Post

          Are Chinese cars selling or just foreign cars?
          Originally posted by RobertKLR View Post

          Are Chinese cars selling or just foreign cars?
          Chinese cars are “too innovative” for foreigners. Hell, even for the Chinese. First thing a Chinese person does when they have just enough money (after they already have an iPhone) is buy a German car, a Tesla, or a Japanese car (if they’re not too old and/or butthurt with Japan).

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          • #6
            Originally posted by Jonathan View Post


            Chinese cars are “too innovative” for foreigners. Hell, even for the Chinese. First thing a Chinese person does when they have just enough money (after they already have an iPhone) is buy a German car, a Tesla, or a Japanese car (if they’re not too old and/or butthurt with Japan).
            I subscribe to a YouTube channel called ADVChina, hosted by an American and a South African who are married to Chinese wives and have lived in China for over ten years. They confirm what you say, the domestic cars are difficult to deal with. But one of the them has been driving a Chinese car for 7 years now. It runs like shit and handles like a drunk donkey but it runs often enough to be useful.

            Comment


            • #7
              To be clear, this new joint venture rule has been proposed long before Trump's trade war. https://www.bloomberg.com/news/artic...kers-on-notice

              The “50:50 rule” has been a cornerstone for China’s auto industry since 1994, designed to buy local auto makers time to gain the technology and build their brands before giving overseas companies unrestricted access to what has become the world’s biggest car market. China began to hint toward easing of the restrictions a few years ago and announced on Tuesday that they will be abolished by 2022.

              The removal of the cap signals China now has more confidence in its home-grown contenders. The market share for Chinese-brand cars has edged up gradually in the country, reaching 43.9 percent in 2017 compared with 41 percent a decade ago, according to the state-backed manufacturers’ association.
              BMW has been working with China on this deal for months. https://www.bloomberg.com/news/artic...-win-for-china

              While those deals have taken months -- if not longer -- to come together, the investments by Munich-based BMW and Palo Alto, California-based Teslaback up Beijing’s claim to be continually opening up its economy and help rebut allegations of protectionism by the Trump administration.


              “China is not backtracking, which is China’s most clever response to the trade war,” said Alicia Garcia Herrero, chief Asia-Pacific economist at Natixis SA in Hong Kong.

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