An auto finance joint venture invested by BMW and its Chinese partner Brilliance Auto will be formed later this year, the Economic Observer website quoted Brilliance Auto chairman as saying.
Brilliance Auto chairman Qi Yumin said the application has been submitted to authorities for approval and the joint venture will share the profits according to their ownership stakes.
The auto finance arm will service the Brilliance Auto-BMW joint venture.
Meanwhile, Brilliance Auto is also mulling over an auto financing unit in conjunction with GE Finance Company to provide financing services to its independent brands.
In addition, the second BMW Brilliance Automotive Ltd plant, a joint venture between BMW and Brilliance Auto, will begin construction in the second half this year, Qi said.
The plant, with an annual production capacity of 70,000 vehicles, will be operational by 2010, producing brand-new BMW vehicles. By then, the two sides will share painting and stamping facilities.
Insiders from Brilliance said the second plant will be located in Shenyang and a 20-minute car ride away from BMW Brilliance's first plant.
According to Qi, the second plant will also produce independent Zhonghua brand vehicles.