According to media reports, HuaChen Auto Group is considering selling its remaining 25% stake, signaling a potential change in the ownership structure of HuaChen BMW. Several Chinese companies, including FAW Group and other emerging enterprises, have expressed interest in acquiring the remaining 25% stake of HuaChen Auto Group. However, there has been no official response to this news as of now.
Data compiled by "BMW Clients" shows that, excluding the profit-sharing from HuaChen BMW between 2015 and 2019, HuaChen Auto Group accumulated a loss of ¥3.484 billion, while HuaChen BMW contributed a total profit of ¥26.9 billion during the same period.
In 2018, on the 15th anniversary of the establishment of HuaChen BMW, both companies announced an extension of their joint venture agreement until 2040. In October of the same year, HuaChen China announced the sale of a 25% stake in HuaChen BMW to BMW.
On November 20, 2020, the Shenyang Intermediate People's Court ruled to accept the creditor's application for the restructuring of HuaChen Group. This marked the formal entry of the automaker into bankruptcy restructuring, involving only the autonomous brand section of the group, excluding listed companies and joint ventures like BMW.
In February 2022, BMW Group officially increased its stake in HuaChen BMW, now holding 75% of the shares, while HuaChen China Automotive Holdings Limited (CBA) retains the remaining 25%. Consequently, HuaChen BMW (BBA) has been fully incorporated into the BMW AG group's financial statements.
For BMW, China remains its most important single market to date, having sold a total of 824,932 vehicles (BMW and MINI) in 2023, a 4.2% year-on-year increase. The Shenyang base is also BMW Group's largest production facility globally and one of its most crucial centers for new energy vehicles. Therefore, BMW's development in the Chinese market is expected to continue positively.
