China is the most important car market for BMW.
But the parent company of the most important BMW partner is now in turmoil.
China is now the most important market for
BMW
.
In the third quarter, the Bavarians achieved
a sales increase of around 30 percent *
in
China
.
But the
mother of
the Chinese joint venture partner is in ever greater
difficulties
.
Munich - The parent company of the Chinese
BMW
* partner Brilliance China Automotive Holding (CBA) is struggling with payment difficulties.
This emerges from a message that the CBA parent
Brilliance Auto Group published
on the Shanghai Stock Exchange.
According to this, the group holding company was unable to repay a corporate bond that matured last Friday with a volume of one billion yuan and 53 million yuan in interest (together about 126.8 million euros) as of the reporting date.
They are still working hard to raise the necessary funds and are in negotiations with investors, according to a further stock exchange announcement dated Monday.
BMW: Group spokeswoman gives the all-clear
A
BMW
spokeswoman told Merkur.de * that the current situation "has
no influence
on our joint venture
BMW
Brilliance Automotive".
Brilliance
has been in financial
difficulties
for a long time.
According to a report by the Chinese business
magazine Caixin
, the company is said to have liabilities equivalent to a good 16 billion euros.
Brilliance and
BMW
build the 3 Series Sedan and the X1 at the Shenyang plant.
According to
Caixin, the
joint venture with the German premium manufacturer
has
recently contributed 90 percent to
Brilliance's
total sales
.
In 2018,
BMW
announced that it wanted to increase its share in the joint venture with Brilliance from 50 to 75 percent by 2022.
BMW: Strong cash inflows fuel expectations of quarterly figures
The Munich-based automaker will present its results for the third quarter on November 4th.
Just over a week ago, Bayern had surprisingly published an ad hoc announcement.
According to this, the free inflow of funds in the core business from July to September was 3.065 billion euros, well above the previous year's figure of 714 million euros.
The unexpectedly strong free cash flow had further fueled expectations of strong numbers in the third quarter.
BMW
Works Council Chairman
Manfred Schoch
had recently also expressed confidence for the current year.
In 2020 as a whole,
BMW
will
"definitely write a positive result," despite the Corona crisis and the decline in sales, Schoch told Merkur.de *.
This means that in 2020 there will be “definitely” no redundancies for operational reasons.
* Merkur.de is part of the nationwide Ippen Digital editorial network.
