Huachen to incorporate BMW engine technology
The technical expertise is expected to give the company's sedans and SUVs an advantage over rival models from Buick and Mercedes
Mainland carmaker Huachen Auto is poised to incorporate the latest engine technology of its European partner, BMW, into its sedans and sport utility vehicles - a move analysts say will give it the upper hand over its rivals as it ventures into the medium to high-end car sector.
Brilliance Auto - the listed arm of Huachen that makes BMW vehicles on the mainland - said its minivan, the Jinbei, would be in a position to compete with Buick's GL8 and Mercedes-Benz's Viano when it was fitted with BMW's N20 engine by the end of next year.
Brilliance chairman Wu Xiaoan said the upgrade would more than triple prices to 200,000 yuan (HK$253,000) from between 50,000 and 60,000 yuan.
"The N20 engine is too big for our sedans and SUV, but we have plans to put BMW's next engine into our Zhonghua vehicles," he said.
Xinchen Power, the engine-making arm of Huachen, hit the headlines this month when it announced it had become the first mainland company to win an engine assembly contract from BMW.
Wu, who is also the chairman of Xinchen, told the South China Morning Post last week that the group aspired to become a first-tier supplier for BMW's next-generation engine under the guidance of BMW engineers.