Berlin, Feb. 11 (BNA): BMW said Friday that BMW has received a license from Chinese authorities to increase its stake in its Chinese joint venture BMW Brilliance Automotive to 75% from 50%.
BMW said the valuation raise would have a one-time positive impact of 7-8 billion euros ($8-9 billion) on the auto sector’s financial results, while increasing free cash flow by nearly 5 billion euros. .
From February 11, BMW Brilliance Automotive will be fully integrated into the financial statements of BMW AG, it said, adding that it will provide more details when its annual results are published on March 16.
Its Chinese partner Brilliance China Automotive Holdings Ltd. will hold the remaining 25%.
BMW said in October 2018 it would pay 3.6 billion euros to take control of its main joint venture in China, after the country announced it would lift long-standing rules restricting foreign ownership of all car projects from 2022 onwards.
BMW delivered 846,237 BMW and MINI vehicles to customers in China in 2021, up 9% from the previous year and making up nearly 40% of total sales.
A US supplier source told Reuters in December that the automaker would add production of its X5 in China, which was previously imported from the United States, in the second quarter of the year at its BMW Brilliance joint venture.
M