There were reports in August 2017 that Chinese automobile manufacturer Great Wall Motors was planning to buy Jeep brand from the Italian-controlled multinational corporation, Fiat Chrysler Automobiles (FCA).
Stock fell 2.1% yesterday amid speculation BMW considering separate, domestic JV with Great Wall Motor.
Great Wall, the parent company of Haval, is the biggest SUV maker in China, while BMW is becoming increasingly spooked by the state of Britain's Brexit negotiations and is desperate to broaden the brand's manufacturing base outside the European island. The JV will see both parties working on electric vehicles, reports Reuters, citing two sources familiar with the matter. A cooperative relationship with Great Wall would be BMW's second in the world's largest auto market - and a necessary one, as China forces all foreign automakers to team up with local partners in order to do business within the country.
BMW's China sales grew 11.3 percent previous year.
"China has made it clear that basically it will not approve of new gasoline-car partnerships".
Trading would be suspended pending clarification of press articles, the company said. The German carmaker now has a joint venture with Brilliance China Automotive Holding, with the contract to expire by 2028.
Brokerage Jefferies said in a note that it was "understandable that BMW needs a new partner to defend its market share in a more competitive market", and expected that the move would hit current partner Brilliance.