Anecdotally we have always heard from dealership that Munich has been long dissatisfied in its relationship with Brilliance. The stock took a hit, down 12% last night - as its JV partner BMW is said to increase its stake in BMW-Brilliance Auto partnership from its current 50% to unspecified higher percentage. Mitch recommendsīrilliance China Auto (1211 HK) is an early victim of China’s open market access, which unfortunately, is largely due to the OEM's incompetence. » Get straight to the source on Smartkarma. A 35% YTD selloff in Brilliance stock can be partially explained by its ongoing diminishing role in BBA JV. Brilliance is likely to remain the main manufacturer of BMW cars, but BMW is now free to set up its own factories and work with multiple partners. Judging from the poor sales of the non-BMW cars that Brilliance makes and sells, there is little sign of tech transfer from BMW to Brilliance despite 15-years of the partnership since 2003. Within the next 15 years, we will see a rebalancing of the relationships between the auto JVs, as the need for a local intermediary for market access is phased out. Breaking free of the “marriage” is made possible by China’s latest policy to allow foreign OEMs to operate by themselves without a local partner by 2022. Brilliance China Auto (1211 HK) is an early victim of China’s open market access, which unfortunately, is largely due to the OEM's incompetence.
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