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Brilliance Group has been filed for bankruptcy reorganization by creditors, and the development of the joint venture brilliance BMW has attracted much attention in the industry. On November 20, the Shenyang Intermediate people's Court ruled to accept the creditor's application for bankruptcy reorganization of brilliance Group, and brilliance Group officially declared bankruptcy reorganization. On the same day, the China Securities Regulatory Commission announced that it would file a case for investigation. Within one day, brilliance Group, which was mired in debt crisis, broke major news one after another.

It may be expected that brilliance Group, which is mired in debt crisis, has been filed for bankruptcy reorganization by its creditors, but what has attracted more attention in the industry is not brilliance itself, but the subsequent development fate of brilliance BMW, a joint venture of brilliance Group. If brilliance Group restructuring fails, what should brilliance BMW do?

On November 21st, some media reported that insiders of the Xushui branch of Great Wall Motor Co., Ltd. revealed that BMW actually has greater expectations for the joint venture plate with Great Wall, not only is it expected to put into production of the entire MINI series in the future, but also the news of the chassis business also shows that BMW's 3-series production line is being laid and mass production of the SOP is expected to begin in 2024.

For such rumors, many netizens do not believe that, after all, brilliance BMW has been established for 17 years, which can be said to have made no small contribution to the layout of BMW in the Chinese market. Its BMW 3-Series has become the main sales model of BMW brilliance, with an average monthly sales of about 15000 vehicles. Even if brilliance's current development is worrying, there is no need to weaken brilliance and transfer such a popular model to Great Wall, which is not a good deal for BMW.

In response to the news, some media sought confirmation from BMW China, and the other side made it clear that the report was false. Fu Xiaokang, vice president of Great Wall Automobile, also said, "after understanding that the report is not true, there is no such thing."

In addition, the Great Wall and BMW joint venture beam car insiders said that they have not heard the relevant rumors. The person also said that the Xushui branch of Great Wall Automobile Co., Ltd. is only a production department and does not have the right to "declare its position". Moreover, Great Wall Motor was not interested in the MINI project at first, and the company executives thought that "if it doesn't make money, it will be slow to get back its money." At present, brilliance Group is just bankruptcy reorganization, not bankruptcy liquidation. As a state-owned enterprise, it is not comparable to other enterprises in terms of size and resources.

Prior to this, the person in charge of brilliance Group said that the reorganization of brilliance Group only involved the independent brand section of the group, not the listed companies of the group and the joint ventures with BMW and Renault. As BMW's most important partner in China, the group is expected to be reborn after restructuring and try its best to recover creditors' losses. At the same time, brilliance BMW remains a stable source of profit in the future, and will continue to launch new products and expand its scale.

BMW said there was no indication that the effectiveness of the previous contract would be limited by the current situation of brilliance's parent company, and that brilliance's operations would not be affected by brilliance's debt.

Due to over-reliance on the profit support of brilliance BMW, its own brands continue to languish. Other businesses such as brilliance China's own brands lost 864 million yuan in 2019 and 340 million yuan in the first half of 2020.

Although it is mired in a debt crisis and huge losses, brilliance still has the value and possibility to save it. If brilliance wants to "come back from the dead", it must vigorously develop its own brand, start from the aspects of technology, products and design, and gradually reduce the absolute support of brilliance BMW to the company. However, judging from the current situation of brilliance, at least for now, it is not easy to save its own brand.

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