Advancing New Energy Vehicle Strategy Localization
BMW Brilliance's High Voltage Battery Center Lays Foundation for Second-Phase

• Fulfilling their commitment to "in China, for China", BMW Brilliance's High Voltage Battery Center Phase II breaks ground
• BMW Brilliance further strengthens new energy vehicle R&D and production
• Opening ceremony kicks off mass production of the BMW Concept iX3.

On May 28th 2018, BMW Brilliance successfully laid the foundation for Phase II of its High Voltage Battery Center. This marks another crucial step in BMW Brilliance's new energy vehicle localization strategy following the opening of the center just last October.

The expansion of the High Voltage Battery (HVB) Center will not only boost BMW Brilliance's battery and new energy vehicle production capacities, it will also enhance R&D capabilities in this key segment. Mr. Oliver Zipse, member of the Board of Management of BMW AG, responsible for Production, said: "Today, we break ground for the next stage of our electric model offensive. In this regard, we further increase the capacity of our local battery production. This enables us to follow the increasing demand for electro mobility in China."

The brand new BMW iX3 concept model launched at Auto China in Beijing will begin mass production at the plant in Shenyang. Production of HVBs for this particular model will start following the completion of Phase II of the center. This will further strengthen the position of the Shenyang base in the BMW Group's global production network. Dr. Johann Wieland, President & CEO of BMW Brilliance said: "Shenyang is not only a production base for BMW in China, but also an important part of BMW's whole innovation and R&D system. Expanding the HVB Center will not only boost the production of HVB and new energy vehicles but also will significantly improve our R&D capacity."

Invest in the Chinese market; enhance NEV local production and R&D.

Following the launch of the HVB Center in Shenyang last October, BMW Brilliance became the first premium auto brand to establish such a facility. Just a short half year later, the foundations have been laid for Phase II of the center. This will include further improvements to technological process, such as the assembly of modules and battery packs, and also logistics and quality management. Construction of the building is estimated to be completed by March 2019 then put to use by the end of the same year, production is planned to launch in 2020. The brand new BMW 5th generation HVBs manufactured by HVB Center Phase II will be equipped in the all new BMW iX3.

Rooted in China; BMW consolidates its leading role in China's NEV market.

During the past 15 years since BMW Brilliance's establishment, the joint venture now has a strong product offering of 6 major models. With the launch of the BMW 5 Series plug-in hybrid, BMW Brilliance has brought 5 new energy vehicles to the market in just 5 years.

BMW also actively promotes the establishment of a NEV eco-system. By the end of 2018, BMW will have set-up over 80,000 charging pillars in China covering over 100 cities, providing customers with more efficient and smarter shared charging services.

"In China, for China" is not just about investment for the OEM's future, but is a long-term commitment to China. Electrification is an inevitable future trend, and the launch of Phase II of the HVB Center will firmly support NEV development and push forward the sustainable development of the entire BMW Group.