BMW expects to set up China auto financing JV in 2010

Aug. 24, 2009 (China Knowledge) - BMW AG, the world's largest premium car maker, has applied to Chinese regulators for approval to set up an auto financing joint venture with its local partner, Brilliance Auto, and expects the JV to become operational in the first half of next year, sources reported.

The JV, to be called BMW Automotive Finance (China) Co, plans to provide auto, wholesale and retail loans and will split profits in proportion to ownership. BMW will hold a 58% stake, and BMW Brilliance China Automotive Ltd, BMW's China auto JV, will hold the remaining 42%.

Kirk Cordill, who will be the chief executive of the JV, said on Friday that the two companies had reached an agreement to set up the auto financing unit last October.

A senior official from Brilliance Auto earlier said that the two companies may invest RMB 2 billion into their second manufacturing plant to boost annual production to 80,000 units as compared to the current 30,000 units by the second half of 2010.

BMW's Shenyang plant currently manufactures BMW 3 series and 5 series cars.