Jeep not for sale; Great Wall mulls a joint venture with BMW

Jeep not for sale; Great Wall mulls a joint venture with BMW

BMW is now considering another joint venture in China so that it can increase its production volumes and strengthen its electric vehicle presence in the market.

Moving some production of the iconic British auto to China may help lower manufacturing costs for the German carmaker that is now in the midst of a costly push for electric vehicles as governments around the world seek to cut pollution caused by fossil fuels.

BMW, in a separate statement, said it aimed to expand business in China and could imagine partnership and cooperation for the Mini brand.

BMW is reportedly in talks with Chinese automaker Great Wall Motors to outsource Chinese production of the iconic Mini.

Great Wall made the comments in a stock exchange filing. "But producing electric cars will help BMW to meet its quota now that China demands every carmaker in the country. produce a certain number of such cars starting from 2019". "Leveraging the growth of Mini in China is only possible with a local partner", the company said.

"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 said in a note, adding that the vehicles could be sold under the Mini brand.

Thus far neither automaker has officially commented on the reports.

If successfully concluded, the BMW-Great Wall talks could yield a first foreign manufacturing partner for Great Wall and a first Mini assembly site outside Europe for the German group.

Brilliance China Automotive's shares were down 2.76 percent.

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