BMW has not yet confirmed if the plant will churn out BMW-only products or if the agreement involves adding a second production facility for the upcoming electric Mini, which is now only slated for production at the brand's Oxford plant in the UK.
BMW AG is working on a deal that will bring manufacturing of the iconic Mini brand to China for the first time, according to people with knowledge of the plan.
"As of the date of this announcement, the company and BMW have not entered into any legal (agreement) for the establishment of a joint venture in China", Great Wall said in its statement. As such, Bloomberg reports the company is looking to outsource some Mini production to Great Wall to reduce costs. "But producing electric cars will help BMW to meet its quota now that China demands every carmaker in the country. produce a certain number of such cars starting from 2019".
If the JV project moves ahead, it will be BMW's second partnership operation in China.
FILE PHOTO: A Great Wall Motors Haval HB-02 concept vehicle is presented during the Auto China 2016 auto show in Beijing, China, April 29, 2016. Shares in Brilliance fell on Wednesday.
"I don't know how far along we have gone nailing this deal", or whether the two companies have official central government approval for the venture, the BMW executive said.
Great Wall, which does not have any car-making partners, did not make an immediate comment on the report on Wednesday, while BMW also declined to immediately comment.
The firm's shares soared as much as 19.2 percent to their highest level in over two years, before paring some gains to stand up 14 percent in afternoon trade. The company suspended trading in the shares on October 12 and September 29 respectively.