Recently, BMW finally issued a statement on the Brilliance Crisis. According to Reuters news, an insider of BMW said that from BMW's standpoint, there is no indication that the effectiveness of the contract signed with Brilliance's parent company to increase its shareholding in the joint venture company will be limited by the current debt crisis.
At the same time, the insider also said that the current operation of BMW Brilliance will not be affected by the debt of Brilliance.
In other words, BMW believes that its share increase in the joint venture company will not change because of the debt crisis of Brilliance's parent company. It is reported that in 20 18, BMW signed an agreement with China Brilliance, and plans to acquire a 25% stake in BMW Brilliance for 3.6 billion euros in 2022. After the acquisition is completed, BMW will increase the equity of the original joint venture company from 50% to 75%, with a decisive voice.
However, for Brilliance Auto, how to solve the huge debt crisis is a problem on the one hand. If BMW Brilliance's share ratio is successfully adjusted, Brilliance will also face a double unfavorable situation of sharp decline in net profit and intensified market competition. This incident also sounded the alarm for other independent brands. Only by building a competitive brand and realizing profitability can we "survive" in an increasingly harsh living environment.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.