Brilliance China plunges 30% after BMW takes over JV

BMW headquarters in Germany

BMW has announced that it will be increasing its stake in its joint-venture in China with Brilliance Automotive in a deal that will see it taking over control of BMW Brilliance Automotive (BBA).

BMW will also invest more than £2.6bn in BBA's production facilities, including the construction of a new plant on the current site in Tiexi that will increase its Chinese production capacity to 650,000 units. When this change occurs is unclear, as the move still needs to be approved by Brilliance's shareholders and the Chinese authorities.

News of the deal has alarmed investors, who fear Brilliance Auto will be left with a smaller share of future earnings from the joint venture.

Foreign automakers have always been restricted to holding no more than a 50 percent stake in their China operations, but Beijing chose to relax the ownership caps this year. That marked the first time a foreign carmaker established a full presence in China without a partner. The BMW-Brilliance deal is scheduled to close in 2022, the year the requirement ends.

"Given the trade dispute between the USA and China, there is a powerful incentive for automakers to produce vehicles in the market where they sell them", said independent auto industry analyst James Chao. The partnership accounted for most of Brilliance's profit past year.

US, Russian astronauts safe after emergency landing
The last time Moscow's space program had a crewed launch failure was during the Soviet era in 1983, when a Soyuz booster exploded. Russian Federation stands to lose that monopoly with the arrival of SpaceX's Dragon and Boeing's Starliner crew capsules .

BMW has been hit particularly hard by the US-China trade war with many of its SUVs imported from the US facing new 25 percent taxes, while cars imported from other countries have benefited from China's tariff cut for vehicles from 25 percent to 15 percent.

From 2020, the fully-electric BMW iX3 will also roll off the production line at Plant Dadong, its sole production location, and be exported from China to markets worldwide. China auto sales dropped in July and August.

The joint-venture "is the cornerstone of the BMW brand's sustained success in its largest single market", said Harald Kruger, BMW's chairman.

BMW finance chief Nicolas Peter, however, said the firm remained bullish about its top market.

Related:

  • Pope Francis Accepts Cardinal Wuerl's Resignation

    Pope Francis Accepts Cardinal Wuerl's Resignation

    Pope Benedict elevated then-Archbishop Wuerl to the College of Cardinals in November 2010, shortly after Wuerl's 70th birthday. Francis has said the devil is ultimately behind sex abuse of children by priests and current divisions in the Church .
    Spidey Gets a New Suit in New Spider-Man

    Spidey Gets a New Suit in New Spider-Man

    The belt is a bit different and features additional black accents, and the gloves have received more changes than anything else. After spending some time in Europe, principal photography on Spider-Man: Far From Home picked up in New York City this week.
    Retired firefighter found guilty for firing shotgun at a black teen

    Retired firefighter found guilty for firing shotgun at a black teen

    Zeigler, whose bond was revoked, was taken into custody where he will remain until sentencing on November 13. Christian Hills Dr., the student said, he thought it would be a safe place to seek help.
  • Goodie bags from Princess Eugenie's wedding selling on eBay for £1,000

    Goodie bags from Princess Eugenie's wedding selling on eBay for £1,000

    Viewers were very impressed by the gesture, even declaring it the "most impressive ever seen". The couple showed clear signs on nerves but beamed happily during the hour-long service.
    Canal Water on the Rise

    Canal Water on the Rise

    However, more than ten countries, including Ireland, showed a lack of appetite for increasing the EU's climate target. He recommended that Vietnam shift into a low-carbon economy, with a focus on the development of renewable energies .
    Mohamed Salah injured in Egypt win

    Mohamed Salah injured in Egypt win

    Egypt had already used all three substitutions so were forced to finish the game with 10 men. Highlights from Liverpool's goalless draw against Manchester City in the Premier League.
  • Djokovic outguns Anderson in Shanghai

    Djokovic outguns Anderson in Shanghai

    The 31-year-old from Serbia is in blistering form, winning Wimbledon, the Cincinnati Masters and US Open in recent months, after having elbow surgery in February.
    Alexander Zverev beats Beijing champion to reach Shanghai last 16

    Alexander Zverev beats Beijing champion to reach Shanghai last 16

    The Argentine was the most recent player to clinch a berth, which he did last week in Beijing with a runner-up performance.
    Bodies Of 11 Infants Found In Ceiling Of Closed Funeral Home

    Bodies Of 11 Infants Found In Ceiling Of Closed Funeral Home

    WDIV said that Detroit police have ordered an entire building search to ensure there are no additional bodies inside. Michigan State Police and the Wayne County Medical examiners responded to the former funeral home Friday.
  • Healthy mice born from same-sex parents for first time

    Healthy mice born from same-sex parents for first time

    They then edited the cells to remove parts of DNA that normally block reproduction using only male or female genes. Just as impressively, the created mice were able to live to adulthood and have offspring of their own.
    Israel halts Gaza fuel deliveries as 7 Palestinians killed

    Israel halts Gaza fuel deliveries as 7 Palestinians killed

    In a statement, the army said troops "spotted a number of assailants who climbed the security fence in the southern Gaza Strip". In response, the IDF said, soldiers used riot dispersal means and live fire in accordance with standard operating procedures.
    Analyst Looks at Democrats' House, Senate Prospects

    Analyst Looks at Democrats' House, Senate Prospects

    Henderson said in a press release earlier this month that the misconduct claims were filed after Kavanaugh's confirmation hearings, which began on September 4.

Comments

Latest news

Nepal storm kills several climbers in Himalayas
The climbers had been waiting for a window of good weather so they could reach the summit, when the storm hit Friday. There were five South Korean climbers and four Nepalese guides in the camp when the strong storm hit.

Henry given first job as head coach by Monaco
Here is an insight into the Monaco duo and whether Manchester United should splash the cash to bring them to the Premier League. He retired as a player in December 2014 to work as a television pundit, before joining Belgium's coaching staff in 2016.

Death Toll From Hurricane Michael Climbs to 11
By all accounts, Sarah Radney was safe inside her grandparents' home when Hurricane Michael roared into southwest Georgia. The Gadsden County Sheriff's office reported four people killed, with one young girl killed in Georgia .

Jetliner lands in US after world's longest flight
Singapore Airlines has held the coveted title before with. wait for it, a non-stop service between Singapore and Newark. The marathon flight had no standard economy seats, only so-called "economy comfort" and business class.

England play out stalemate with Croatia in Rijeka
Kane said: 'It was a unusual one, we're not using to playing with no fans, it's hard without the atmosphere'. We were braver and more decisive. 'Now the players are more established and look comfortable.

This human-like robot can now perform parkour
Atlas also used computer vision technology to tell exactly where it is in space and plan where to land when it jumps. Boston Dynamics' robots are moving in the opposite direction, learning new things at a terrifying rate.

World’s longest commercial flight is coming back with gyms and bunks
Tickets for the new route start at £1,639 in Premium Economy and £3,689 in Business Class. Premium economy fares get three meals at fixed times, with refreshments in between.

Facebook says 14m accounts had personal data stolen in recent breach
On Friday, the data gathering biz said a mere 30 million people were robbed of their authentication tokens. For 15 million, the cyberthieves only accessed name and contact information.

Milwaukee Brewers Sweep Rockies to Advance to NLCS
The Brewers proved ready, as they handled the Cubs and sent their rival to the one-game Wild Card against the Rockies. Orlando Arcia and Keon Broxton (home run) all chipped in run-producing hits in the win.

Pik Botha one of 'leading personalities in SA politics' - De Klerk
He served as a minister in Mr Mandela's first post-apartheid government, praising the president as a healing figure. His son, Piet Botha confirmed to South African media that his father died in his sleep during the night.

Dutch PM 'cautiously optimistic' about progress on Brexit talks
A negotiated Brexit, and Theresa May's survival, hinge on whether her ministers and MPs can live with this paradox. "The prime minister is a unionist".

Pixel 3 doesn’t have a second rear camera because it’s ‘unnecessary’: Google
Google's new Pixel phones mirror an industry trend toward lusher, bigger screens and add twists on the camera for better pictures. The Pixel phones could enable better photos, but that alone may not be enough to lure smartphone users on a significant scale.

Dodgers tweak lineup to adjust to Braves left-hander Newcomb
With the series on the line, the Indians sent Mike Clevinger to the mound against Dallas Keuchel with the season on the line. The Braves haven't been able to score a single run through the first two games, much less register a win.

Soyuz Space Crew Makes Emergency Landing After Terrifying Booster Failure
USA astronaut Nick Hague and Russian cosmonaut Aleksey Ovchinin were rescued without injuries in Kazakhstan. NASA later tweeted images of the two men embracing their families back in Baikonur.

Police called on black man babysitting white kids
Parker and Mango told police Lewis is a family friend and their children are in his youth program, called " Inspired by Lewis ". The officer is seen in the second video questioning Lewis and the two children at his home.

Other news