BMW Group announced it has acquired Chinese domestic car leasing supplier Herald Leasing, indicating the importance of the world’s largest auto market to BMW and paving the way for its future development of auto rental operations in China.
BMW reached an agreement earlier with investment management firm PAG to wholly acquire its subsidiary Herald Leasing. Both parties have undertaken not to disclose details of the agreement.
"We firmly believe in the medium- and long-term potential of the Chinese auto market and are preparing for the next phase of growth," said Erich Ebner von Eschenbach, head of BMW Group Financial Services.
Established in 2009, Herald Leasing currently has 250 employees and reported RMB208 million (approx: US$32.6 million) in annual revenues in 2014. One of its core advantages is its broad regional reach - it has obtained the license to operate leasing in 58 cities. This advantage will give Herald Leasing an edge in future expansion in the leasing segment.(Translation by David)
