Bloomberg: BMW AG said taking over its Chinese car-making joint venture will bolster earnings by as much as 8 billion euros ($9.1 billion), sending a signal to peers that it pays to assume control of operations in the world’s largest car market.
Chinese authorities gave BMW permission to raise its stake in the business with Brilliance China Automotive Holdings Ltd. to 75% from 50%, the German company said Friday. The move will lead to a positive one-time effect of 7 billion euros to 8 billion euros for BMW’s main automotive segment.
BMW is one of the first Western automakers to benefit from the relaxing of China’s foreign ownership rules — a watershed moment for the industry. China is BMW’s biggest national market, accounting for about a third of global deliveries last year. Its venture there assembles BMW-branded models for sale locally and the all-electric iX3 sport utility vehicle for export to global markets.
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