BMW backs the restructuring of China JV partner's parent Huachen (updated)

Brilliance China Automotive Holdings

31/08/2021 12:26

(Adds more details, background)
    BEIJING, Aug 31 (Reuters) - BMW  BMWG.DE  said on Tuesday it
wanted to support the restructuring of Huachen Group, parent of
the German premium automaker's Chinese joint venture partner
Brilliance China Automotive  1114.HK . 
    BMW said in a statement to Reuters that it also wanted to
use Huachen's existing car manufacturing capacity. Huachen is
based in China's northeastern city of Shenyang in Liaoning
province.
    "To BMW, Liaoning province and the city of Shenyang have
become the crucial innovation and production base in China, and
the cornerstone of our future success in China," BMW said, it
did not offer details of how it plans to participate in
Huachen's restructuring.
    BMW Brilliance Automotive (BBA) is BMW's main business in
China and key to its global sales. BMW said in 2018 that it
would pay 3.6 billion euros ($4.2 billion) in 2022 for a further
25% stake in BBA.  urn:newsml:reuters.com:*:nL1N2I30JW
    Huachen has defaulted on billions of yuan in debt
obligations. Chinese regulators have launched an investigation
into possible violations of disclosure laws by the
company. urn:newsml:reuters.com:*:nL4N2I43Q1
    BMW separately operates a joint venture for electric
vehicles with Great Wall Motor  601633.SS .

 (Reporting by Yilei Sun and Brenda Goh
Editing by Mark Potter and Louise Heavens)
 ((Y.Sun@thomsonreuters.com; +86 10 66271262; Reuters Messaging:
y.sun.thomsonreuters.com@reuters.net))