BERLIN: German auto giant BMW said Wednesday it has acquired Chinese firm Herald Leasing as part of its bid to broaden the business in its biggest market to include car leasing.
“With this move, the company is responding to the increasing importance of the emerging leasing business in the world’s largest vehicle market and laying the foundation for further growth,” said BMW in a statement.
Financial details of the transaction were not disclosed.
“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.
“New business areas, such as leasing and fleet management, will be an increasingly important part of this,” added von Eschenbach.
The acquisition will allow BMW to add leasing options to its local financing services.
Herald Leasing has offices in 58 Chinese cities, employs around 250 people and reported revenues of 208 million yuan (30 million euros, $33 million) for 2014.
The German auto giant delivered around 343,000 BMW, MINI and Rolls-Royce cars to customers in China in the first nine months of 2015, up 2.3 percent from the same period last year.
