BMW to continue joint venture plans with Brilliance
BMW says it will go ahead with its joint venture with Brilliance China despite the ownership dispute between the mainland company's ex-chairman and the Liaoning provincial government.
The news came as Brilliance China's board yesterday approved a special general meeting for November 22 to remove ex-chairman Yang Rong as a director.
On Tuesday, China's largest minivan maker confirmed that the Liaoning Public Security Bureau had issued an arrest warrant for Mr Yang - who fled to the US in May - for suspected 'economic crimes'.
A day later, Mr Yang hit back, accusing the Liaoning provincial government of trying to assert ownership over what he claimed were his private assets in Brilliance China through the issue of a 'groundless' arrest warrant.
He said Beijing city's Supreme People's Court on October 14 had accepted a civil lawsuit filed by his company against the Liaoning government.
A spokesman at BMW's Beijing office said yesterday: 'Our co-operation with Brilliance China will go ahead. We submitted a feasibility report on the production venture to the Chinese central government a few weeks ago and we are waiting for approval from the authorities.'
He expected the government would announce the result early next year. The two parties would hold talks to sign a formal contract once approval was granted.
Beijing has already approved the setting up of the joint venture to produce and sell the latest BMW '3' and '5' series models in China.
Subject to government approval, the joint venture is expected to have annual production capacity of 30,000 vehicles.