BMW Shows That Luxury Brands Can Pull Off ‘Common Prosperity’
The Germany company could soon be able to make more quality cars at increasingly affordable prices in China. The timing couldn't be better.
Can high brow go low brow?
Photographer: Qilai Shen/Bloomberg
BMW AG is set to effectively bail out its flailing Chinese joint-venture partner. For the German carmaker, that’s a smart move.
BMW’s China unit is close to a deal to buy production assets worth $252 million from the parent of its main partner, Brilliance Auto, Bloomberg News reported citing people familiar with the matter. The information was disclosed at a creditors’ meeting for Brilliance Auto on Tuesday. State-owned, Shenyang-based Huachen Automotive Group Holding Co., the parent, has been navigating a bankruptcy restructuring process since last November after it defaulted on 6.5 billion yuan ($1 billion) of debt. The deal, if approved, would allow it to pay down some of its borrowings.