The BMW Group is looking to expand the success of its MINI brand by looking at a new joint venture in China. One aspect of the brand’s continued strategic development will be to produce battery-electric MINI vehicles locally in China – the world’s largest market for electro mobility.
Therefore, “letter of intent” has been signed by the BMW Group with the Chinese manufacturer Great Wall Motor. This shows a clear commitment to building an electrified future with the MINI brand, especially as the main MINI plant in Oxford is to begin producing the first batter electric MINI cars in 2019. The next step will include agreeing on the details of possible joint venture and cooperation agreement. Likewise, various aspects will need to be clarified, such as the choice of production location and concrete investments.
The BMW Group is to also expand its BMW Brilliance Automotive (BBA) joint venture in China with its partner, Brilliance. This is a highly successful venture and will be developed separately from its strategic considerations towards the MINI brand. BBA already has two automobile production locations in Shenyang and runs an engine plant, which includes a battery factory for electrified BMW brand vehicles produced locally.
BMW Group’s strategy for expansion adheres to the principle of production following the market. However, expansion of the brand to larger markets like China does not mean decreased production at BMW Group’s German plants. In fact, production in Germany increased between 2007 and 2017, whilst simultaneously, nearly half of all BMW production now takes place at plants outside Germany.
