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Original title: Will Brilliance Group Restructuring Affect BMW Brilliance Response BMW China?
[Smart Car News]Recently, Brilliance Group was frequently sought for its debt default amount of 6.5 billion yuan and overdue interest amount of 144 million yuan. In addition to the Brilliance Group itself, this issue is also related to the “BMW Brilliance” joint venture brand between Brilliance and BMW. Will BMW Brilliance be affected accordingly?
Brilliance Automobile Group information running (Picture Source Enterprise Check)
On November 18, BMW China responded to the recently rising news that Brilliance Group is in a deep debt crisis: BMW Brilliance Automotive Co., Ltd. and Brilliance Group are independent legal entities. The current problem is just a matter of Brilliance Group and the operation of our joint venture, BMW Brilliance, will not be affected. Brilliance Group’s main body credit rating and its bonds have been downgraded many times Dagong International and Oriental Jincheng have downgraded their credit ratings from the original AAA level to the current CCC level.
BMW Brilliance plant in Shenyang
Additionally, a source close to the Liaoning provincial government revealed that the local government is eager for BMW to increase its stake in the BMW Brilliance joint venture as planned and expand production capacity. Back in 2018 BMW said it would acquire a 25% stake in BMW Brilliance in 2022 and increase its holding ratio from 50% to 75% to gain control of BMW Brilliance. The “Special Administrative Measures for Access to Foreign Investment (Negative List) (2018 Edition)” jointly issued by the National Development and Reform Commission and the Ministry of Commerce in 2018 show that restrictions on foreign ownership of commercial vehicles will be revoked in 2020 and restrictions on foreign ownership of passenger vehicles will be lifted in 2022. At the same time, the restriction on no more than two joint ventures is canceled.
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