Beijing Auto reverses gear on Aston Martin
Partnership talks between Chinese and British carmakers end in disagreement over ownership
A major Chinese carmaker has walked away from the chance to make luxury Aston Martin cars on the mainland, mainly because of disputes over ownership and valuation issues.
The closed-door talks between Beijing Automotive and Britain's Aston Martin Lagonda - famous for the cars used by James Bond in the British spy films - about joint ventures or direct investments have been terminated, according to people familiar with the matter.
Late last year, Beijing Auto, the mainland's fifth-largest carmaker in terms of sales, hired Royal Bank of Scotland to advise it on possible foreign investment opportunities, said the people, who declined to be identified as they were not authorised to speak to the media.
The South China Morning Post broke the news in October last year that Beijing Auto had entered talks with Aston Martin Lagonda because the Chinese carmaker wanted to diversify its product line to meet growing demand from mainland consumers, particularly the middle class, some of whom see their cars as more than a basic means of transport and as a component of a luxury lifestyle.
Beijing Auto already has joint ventures with South Korea's Hyundai and Germany's Daimler, the maker of Mercedes-Benz cars, on the mainland.
"[Beijing Auto] definitely needs more car models, because Chinese consumers are getting more and more sophisticated," one of the people said.