BMW to outsource China mini auto making to Great Wall


The company's shares will resume trading in Hong Kong on October 16, according to the statement.

Great Wall made the comments in a stock exchange filing.

BMW is reportedly in talks with Chinese automaker Great Wall Motors to outsource Chinese production of the iconic Mini.

Association with Great Wall would see increase in both BMW's production volume and its EV share in one of the largest automobile industry in the world.

Great Wall's shares had surged 14 percent on Wednesday and were later suspended after Reuters reported that it was discussing a joint venture with the German premium manufacturer, focused on electric vehicles.

BMW's China sales grew 11.3 percent past year. The agreement would mark the first time the Mini would be produced outside of Europe and units could be exported to markets beyond China.

John Zeng, managing director of LMC Automotive Shanghai, said the possible partnership might be dedicated to electric Mini cars.

BMW is now considering another joint venture in China so that it can increase its production volumes and strengthen its electric vehicle presence in the market.

BMW is now the second-largest premium vehicle maker in China after Audi. The company suspended trading in the shares on October 12 and September 29 respectively.

Great Wall, which does not have any car-making partners, did not make an immediate comment on the report on Wednesday, while BMW also declined to immediately comment.

Bernstein analysts said they believed that any new venture of BMW and Great Wall would have to sell exclusively electric vehicles (EVs), given China's moratorium on approvals for new gasoline auto businesses.