BMW and partner Brilliance Automotive plan to establish a new own brand in China, which will market only new energy vehicles.
Since 2008 several automakers have been trying to establish their own brands in China, including SAIC-GM-Wuling’s Baojun, Guangqi Honda’s Everus, FAW-VW’s Kaili, Shanghai VW’s Tantos, and Dongfeng Nissan’s Venucia. Beijing Hyundai, Guangqi Toyota and FAW Toyota are currently preparing to introduce their own brands. BMW would be the latest of these multinational automakers to establish a new brand exclusively for this country.
In 2011, during Brilliance’s own brand negotiations, BWM encouraged the company to develop its Zhonghua and Jinbei brands. Brilliance Chairman Qi Yumin declared that a Brilliance BMW own brand would be important for its substance and not its form and that foreign auto makers do not set up own brands in China to pass over technology to the country’s partners. He also said that although own brands are only established to boost the auto makers’ global competitiveness, they could also help the Chinese companies.
“I can’t say that a joint venture own brand is incorrect, but if BMW can support us with technology [via] our Zhonghua brand, I believe this method will be more useful,” Mr. Qi was quoted as saying.