The JV will focus on the development, procurement and production of EVs in China
BMW Group and Great Wall Motor have signed an agreement to produce electric vehicles (EVs) through a 50:50 joint venture based in China. The new joint venture, ‘Spotlight Automotive Limited’, will develop MINI EVs as well as EVs for Great Wall Motor. The JV will be located in Jiangsu Province, where the partners will create a state-of-the-art production facility.
The formal agreement follows the letter of intent signed with Great Wall Motor in early 2018.
“Today’s signing represents a new level of cooperation between China and Germany,” said chairman of the board of management of BMW AG Harald Krüger. “This strategic partnership is a clear win-win for the BMW Group and Great Wall Motor, enabling us to contribute to China’s ambitious plans to ramp-up new energy vehicles and reduce emissions in the mobility sector,” elaborated Krüger.
“The strengths and expertise of both companies complement each other well,” said member of board of management at BMW AG Klaus Fröhlich.
“Our experience as a pioneer and leader in the field of electrification, coupled with Great Wall Motor’s proven track-record in efficient industrialisation, enables us together to drive the growth of the largest e-mobility market in the world,” Fröhlich continued. “With our joint approach, we can quickly scale up production and increase efficiency in the highly competitive segment of compact electric vehicles.”
BMW has said it has no plans to set up an additional sales organisation in China, and is “firmly committed” to continuing the successful cooperation under the established sales structure.
The establishment of the new company is subject to approval from the relevant Chinese authorities and the completion of business registration procedures.
The deal was signed during a visit to Germany by Chinese Premier Li Keqiang, during which he met German Chancellor Angela Merkel.
The visit has seen a raft of deals signed, including one that will see BMW sign a deal with China’s CATL to buy 4 billion euros worth of batteries, and a deal between Volkswagen and Anhui Jianghuai Automobile Group Corp. to build an EV-focused R&D centre.