BMW to Acquire Brilliance Auto Zhonghua Brand with RMB1.633 Billion

Date:2021-09-01 Author:Grace Source:chinaspv.com

September 1, 2021, Shenyang, China, On the morning of August 31, BMW China’s acquisition of Zhonghua brand and other three bills were passed.

It is reported that BMW China will acquire Zhonghua automobile brand with RMB1.633 million. According to public data, by the end of November 20, 2020, Zhonghua brand had produced RMB1.233 billion assets, which meant that BMW China purchased production qualification with RMB400 million.

BMW China noted, “We hope to support Brilliance Auto Group reconstruction with practical action and further expand our business in Liaoning relying on Brilliance Auto existing production ability.” Besides, an insider disclosed that the above asset of Zhonghua Automobile brand will be used to produce BMW relative products and Zhonghua brand will no longer exist.

The data showed that in 2006, Brilliance Auto sold over 200,000 units vehicles, up by 71.4% YOY; in 2007, Brilliance Auto reached large increase in sales, which was over 300,000 units and turned losses into gains.

However, with the negative effect of price war, Brilliance Zhonghua brand value depreciated rapidly and saw drastically decreasing sales due to poor technology accumulation and low quality. In 2018, Brilliance Jinbei vehicles’ sales were 21,400 units, down by 0.46% YOY, and sales of Zhonghua were 67,800 units only.