• Nieuwsbrief

02 05 2019 01

SHANGHAI — Germany’s three major automotive groups are adopting different strategies for controlling their local joint ventures in China.

The Volkswagen Group, for example, thinks the rapid market developments in a technologically progressive country such as China require the automaker to at least rethink its entire ownership structure. By comparison, Daimler sees no need to act, while the BMW Group already has seized the opportunity to secure a greater share of profits from its joint venture last October.

The current dilemma stems from a new law that loosens the decades-old requirement permitting foreign automakers to operate in the world's largest car market only through a joint venture with a local partner in which the foreign companies are allowed to own a maximum of 50 percent.

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