Photo/Shetuwang

Feb. 24 (NBD) -- China's automobile maker Great Wall Motor Company Limited (hereafter referred to as "Great Wall Motor") Friday made an announcement that the company, along with German carmaker BMW, is evaluating the prospect and feasibility of setting up a joint venture to cooperate in the field of new energy vehicles (NEVs). 

The investment scale, business model and other terms of the new firm haven't been determined, according to the statement.

The two sides signed the letter of intent on Friday, attempting to develop a new joint venture leveraging the technology and business knowledge of both companies.

The new firm will mainly focus on the development, purchase, and manufacturing of NEVs and also other activities in the NEV field.

BMW confirmed the joint venture plan with the Chinese automobile maker for the first time on the same day.   

According to the German carmaker, the new joint venture will manufacture its new fully electric model Mini. While BMW expects to enhance the global expansion of the brand Mini, Great Wall Motor will gain opportunities to collaborate with the well-known automobile manufacturer. 

The Hebei, China-based company now has three brands - Haval, Great Wall and WEY, offering sport utility vehicles, pickups and other cars. It has four manufacturing bases and is able to independently produce core parts of cars such as the engine and transmission.

As the leading automobile and motorcycle manufacturer, BMW owns four brands - BMW, MINI, Rolls-Royce and BMW Motorrad, and its business covers production and sales of engines, automobiles, spare parts and machinery products, and metal processing. Besides, the company provides financial and mobility services.

In 2017, BMW's NEV sales exceeded 100,000 units around the globe, which showed the company's great advantage in the global NEV market. Its technology as well as experience in the niche sector and the strength of Great Wall Motor will be complementary to each other.

It is noted that the Germen automobile giant said that it won't build a new sales service system in China. This indicated that models produced by the new joint venture with Great Wall Motor will be sold through BMW's current sales and service network system.

Email: zhanglingxiao@nbd.com.cn