AutoBeta(AutoBeta.net)03/07 Report--

After the restrictions on joint venture shares in the automobile industry have been phased out, brilliance BMW has become the first company to taste fresh, and will more foreign car companies join the ranks?

A few days ago, Honda executives made it clear in an interview that Honda will not give up its joint venture model in China. Honda's head of intellectual property Standardization Co-ordination Department said, "even if China's auto industry opens the 50% maximum shareholding limit, Honda will not change its existing cooperation model with Chinese car companies." will adhere to the strategy of not wholly-owned or controlling development in China. " It also said that to understand the Chinese market, Honda cannot rely on itself, but must cooperate with local car companies.

It means that Honda is not considering a wholly-owned operation in China, nor is it intended to increase the equity ratio of the joint venture.

According to the document of the National Development and Reform Commission, the policy of China's joint venture stock ratio will be withdrawn in 2022, the restriction on foreign equity ratio of passenger cars will be lifted, and the restrictions on no more than two joint ventures will be lifted at the same time.

After the news was announced, BMW Group confirmed that it would increase its capital to brilliance BMW Holdings, buying part of brilliance's stake for 3.6 billion euros, increasing its shareholding to 75%, while brilliance's joint venture model would continue until 2040.

In response to the issue of joint venture stock ratio, Volkswagen said it had no intention to change the joint venture stock ratio in China, and Changan Ford was also exposed that Ford intended to increase its holdings, but both Ford China and Changan Automobile denied it.

Honda currently has two vehicle manufacturing joint ventures in China, of which Guangzhou Auto Honda was established in 1998, 50 per cent each funded by GAC GROUP and Honda for a period of 30 years, and Dongfeng Honda was established in 2003, in which Dongfeng Motor owns 50 per cent. Honda China and Japan Honda own 10% and 40% of the joint venture respectively.

With the release of the joint venture stock ratio limit in 2022, there may be more equity changes in the joint venture company, and the right to speak will fall into the hands of foreign parties.

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