, Columnist
BMW’s Pricey China Ride Can Handle a Bumpy Road
Luxury car sales are holding up even as the world’s largest auto market slows.
Luxury doesn’t come cheap.
Photograph: STR/AFP/Getty Images
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BMW AG is driving into China at full speed on a bumpy road. Fret not, it will steer through.
Just as a luxury crackdown takes hold and the auto market slows, the German carmaker has agreed to spend $4.1 billion to increase its stake in a venture with Brilliance China Automotive Holdings Ltd. to a controlling 75 percent. The purchase of an additional 25 percent extends its foothold in the world’s largest car market until 2040. The deal will close only in 2022, when new foreign ownership rules kick in.