BMW has recently acquired Chinese firm Herald Leasing which has offices in 58 cities across the country and employs approximately 250 people. Reported revenues for the company stood at 208 million yuan or $33 million/30 million euros for 2014.
According to news sources, German automobile icon BMW has recently acquired Herald Leasing, a leading Chinese firm which is part of the brand’s move to expand its car leasing businesses in leading markets. The company is steadily responding to the growing relevance of leasing businesses in China, one of the biggest vehicle markets in the world and this move is also aimed at setting foundations for future growth in this category. The German company recently released statements to this effect. The financial details of the buyout were not disclosed by the company to the media.
According to the head, BMW Group Financial Services, Erich Ebner von Eschenbach, the company is committed to its belief in long and medium term growth potential of the Chinese automobile market and is steadfastly embarking on preparatory measures for the next growth phase. Areas of new business including fleet management and leasing will be key to the company’s growth strategy for a key market like China. The acquisition will enable the addition of leasing options to local financing services by BMW.
Herald Leasing has a country wide presence in 58 cities and has an army of 250 staff as reported earlier. With reported revenues of 30 million euros or $33 million for 2014, the acquisition definitely looks to be financially lucrative for BMW as well. Till September 2015, BMW delivered approximately 343, 000 Mini Cooper, BMW and Rolls Royce vehicles to its Chinese customers which represents an increase in growth figures to the tune of around 2.3% in comparison to its performance in a similar period last year.