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About the "Spotlight", what did GWM said?

From:Internet Info Agency 2018-08-14 17:44:04

Pickup trucks and SUVs are the cornerstones of the success of Great Wall Motor (hereinafter referred to as GWM). When GWM facing the important period of automobile industry transformation, to plan the layout of the new energy market is the key to its sustainable development. At present, GWM has mapped out a core strategy to invest more in the new energy sector. It aims to obtain a dominant position in the new energy market in the next 3-5 years.

The cooperation with BMW Holding B.V. (hereinafter referred to as BMW) is one of the important measures that GWM to plan the layout of the new energy market and to promote its development. On July 10, witnessed by Chinese Prime Minister Li Keqiang and German Chancellor Angela Merkel, the two parties formally signed a framework contract on joint venture (JV) operation in Germany, named the new JV " Spotlight Automotive Ltd. ".

On July 11, Wei Jianjun, Chairman of GWM who flew back to China right after the contract signed the day before, participated in a media conference in the afternoon. The main content of the conference is about the cooperation between GWM and BMW, and to interpret details of the signed contract.

1. About the GWM electric vehicles produced by the JV.

According to the contract, apart from producing the MINI Electric, the new JV will also produce electric vehicles for GWM.

Regarding the producing of the MINI Electric had been confirmed before the signing, electric vehicles produced for GWM will belong to the Spotlight. The new brand, which name is temporarily undecided, will lead GWM to a higher end of the new energy market. In terms of dealer network, the two brands will also adopt different channels. MINI Electric will adopt BMW's existing sales and service channels, while the electric vehicles of the new brand will be sold through GWM’s channels.

2. Why is the new JV named "Spotlight"?

Firstly, both BMW and GWM hope to name the JV an independent name without any features of the two companies so as to pursue a more independent development. At the same time, the word "spotlight" can be linked to clean energy, representing the sustainable and positive energy of both parties and the bright future of cooperation.

3. Is the Spotlight has any relations to the Ora?

There are no relations between the two brands, said by the company. First, the Spotlight is a JV between GWM and BMW. The GWM electric vehicles it produced also belongs to the JV, aiming at leading GWM to enter a higher end market. The products produced by Spotlight will base on a new platform, but it will refer to the technical part of Ora. In addition, the first product will be a compact SUV with a maximum cruising range of around 500 kilometers. It will be launched in the first half of 2021.

However, the Ora will be manufactured on the ME platform. The first model will be officially launched in October this year, with a maximum cruising range of 350 kilometers. In addition, in next July, another new product of the Ora will also be introduced to the market.

4. Is the future cooperation scope of the Spotlight limited to electric vehicles?

Perhaps many people regard this cooperation as the result of “Dual-credit” scheme introduced by the Chinese government. It is a scheme for gasoline cars' fuel consumption and new energy car production. Those automakers who fail to meet the goals will have to buy credits from others or be fined. However, according to the contract, the JV can both conduct the R&D and production of new energy vehicles (NEV) and produce and develop internal combustion engine (ICE) vehicles. In this regard, Zhao Guoqing, vice president of GWM said, “The JV will produce fuel vehicles, but the time is undetermined.”

According to the contract, it is a JV that 50% of the shares will be held by GWM and BMW respectively, with a registered capital of 1.7 billion RMB yuan (approx. $252 million) and a total investment of 5.1 billion RMB yuan (approx. $756 million). The registered address is in Zhangjiagang, Jiangsu Province. The city locates in the region of Yangtze River Delta where features developed economy, transportation and sufficient talent reserve. The JV has planned an international advanced vehicle plant with an annual standard capacity of 160,000 vehicles, and the maximum capacity can be expanded to 250,000 vehicles. For the dual-credit distribution, it will also be allocated according to the JV's share ratio of 50% to 50%.

Whether it is forced by the pressure of “dual-credit” scheme or the trend of resources optimization of the global automobile industry, it is better for GWM to cooperate with BMW, the internationally renowned automobile company, than to act alone in the market. The reason why BMW selected GWM as its world's first BEV joint venture partner is that the sufficient technology experience in the field of vehicle R&D, fuel power, and R&D and manufacturing of the core parts of NEV. With the in-depth cooperation between the two parties in brand building, management system, manufacturing, technology, and R&D, we will accelerate the globalization process and the new energy development of GWM, and become a high-end international brand eventually.


Editor:Wang Jingya