Shanghai (ZXZC)- In the presence of China's Prime Minister Li Keqiang and Germany's Chancellor Angela Merkel, BMW (Netherland) Holding Ltd. (BMW) signed a contract on joint venture (JV) operation with China's  automaker Great Wall Motor (GWM) on July 10.

As the contract regulates, GWM and BMW will set up a new 50-50 JV, which will be named Spotlight Automotive Ltd., with a registered capital of RMB 1.7 billion. To be sited in Zhang Jiagang, Jiangsu Province, the new JV will enjoy a total investment of RMB 5.1 billion. The JV plans to build up a world-leading vehicle-manufacturing plant which will have an annual production capacity of 160,000 units.

The cooperation between BMW and GWM is an enhancement for GWM's internationalization strategy. In the future, both parties will deepen their cooperation in brand building, management system, manufacturing and technology R&D, helping boost both parties’ development in NEVs as well as expand their overseas footprint.