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The Parent Of BMW s Chinese Partner And Its Executives Fined Nearly $9M By Gov Regulators

False reporting and incomplete disclosures have led China’s securities regulator to fine Huachen Automotive Group Holdings and some of its executives a total of nearly $9 million. The company owns Brilliance China Automotive, BMW’s main Chinese partner. Together, the companies formed BMW Brilliance Automotive under China’s requirement that foreign automakers partner with local companies. BMW Brilliance accounts for nearly all of Brilliance’s profit, per Reuters. As Huachen Automotive Group sought to launch its own automotive brands, it sank deeply into debt. In 2020, the company defaulted on 6.5 billion yuan (a little over $1 billion USD) in debt last year.

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