BMW may outsource production of Mini vehicles to China’s Great Wall Motors as it looks to cut production costs.
According to , the German automaker is currently in talks with Great Wall Motors to build Minis for export in China. If the agreement between the two brands is reached, it would mark the first time Mini badged vehicles would be built outside of Europe. Great Wall Motors ceased trading of its shares after its stock surged 14 percent following the publication of the report. A BMW exec told the report was “generally true.”
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Like many automakers, BMW is looking to cut spending amid rising research and development costs. With companies looking to rapidly develop electric vehicles and autonomous tech, many are looking to trim spending costs elsewhere. In September, BMW said it would cut $2.4 billion from its annual purchasing budget in order to fund its shift to EVs. It hopes to bring 12 new electric vehicles to market by 2025 – including a production version of the electric and autonomous iNext crossover concept.
“The change in the industry that looms large is significant, it’s coming and there’s no longer the question of when — it’s now,” BMW’s head of purchasing, Markus Duesmann, told in September, referencing the rising cost of car development as governments impose strict regulations on fossil fuel vehicles. “The number of balls we have to keep in the air is huge.”
[Source: Bloomberg]
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