German carmaker BMW and Chinese group Great Wall Motor will invest 650 million euros ($ 715 million) in a new factory to produce mostly electric mini vehicles, the German company said on Friday.
Construction of the factory in Zhangjiagang, Jiangsu Province, which will have 3,000 employees and a production capacity of 160,000 units per year, is expected to be completed by 2022, according to BMW. Collaborating with Great Wall “is an important strategic step for the brand,” said Nicolas Peter, the chief financial officer of the German automaker.
In 2018 the two automakers signed an agreement to set up a joint venture, Spotlight Automotive Limited. The factory will also allow BMW “to attractively produce a large number of mini electric cars for the global market,” said Peter, of what is already happening at the Oxford factory in the United Kingdom.