Bayerische Motoren Werke AG (BMW) said it will extend its partnership with its Chinese partner until 2028 as it seeks to challenge Volkswagen AG’s Audi in the world’s biggest auto market.
The Munich-based manufacturer will renew its partnership with Brilliance China Automotive Holdings Ltd. (1114) for another 10 years, according to Karsten Engel, head of BMW’s China business. Its current 15-year joint-venture agreement is set to expire in 2018.
The extension would pave the way for BMW to discuss longer-term expansion plans with Brilliance in China. BMW, the world’s largest maker of luxury cars, has seen sales in China expand about 25 percent during the first five months, on pace to top annual deliveries of 400,000 vehicles for the first time.
BMW and Brilliance signed a memorandum of understanding in Berlin in March to deepen their cooperation through adding joint projects, BMW said in March. The joint venture is also expanding its vehicle production capacity to 400,000 units in its two production facilities in Shenyang.
China Automotive News reported earlier on the contract extension.
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