BMW-Brilliance JV fails to gain approval for plant expansion in China
BMW's move to boost its production capacity underscored the automaker's plans to strengthen its presence in China.
BMW's Chinese joint-venture (JV) with Brilliance has failed to obtain regulatory clearances for plant expansion from China's environment ministry, reports Dow Jones Chinese Financial Wire. The JV was hoping to double annual output capacity to 400,000 units by expanding one of its plants in Shenyang. BMW-Brilliance operates two plants in Shenyang, each with annual production capacity of 100,000 cars. Another report in Bloomberg quoted BMW spokesperson Alexander Bilgeri as saying that the ministry has asked for additional documents and the rejection was not final. The report said the JV's plan submitted to the ministry failed to meet the government's goals of reducing emissions.
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