SHENYANG/HONG KONG (dpa-AFX) - The main owner of BMW's Chinese partner Brilliance China Automotive is reportedly considering selling a stake in the joint venture with the German carmaker. Preliminary talks have taken place with local carmakers, including VW partner FAW, the Bloomberg news agency reported on Monday, citing people familiar with the matter. Talks are continuing, but it is uncertain whether a deal will materialize, the report added. BMW has held three quarters of the shares in the car manufacturing joint venture BBA since the majority takeover almost two years ago, with the remainder belonging to its partner Brilliance.

Brilliance China's parent company, Brilliance Auto Group Holdings, which is listed on the Hong Kong stock exchange, has been under financial pressure for several years. In 2020, the company was unable to repay its debts. Regulators had also imposed fines on the company for incorrect accounting. Last year, the local government of the Chinese megacity Shenyang stepped in to take over Brilliance China's liabilities and around 30 percent of the company's shares as part of a restructuring.

In Shenyang, the joint venture BBA produces BMW cars from seven model series in several plants, with an annual production capacity of 830,000 cars. Around 26,000 people work at BBA. The Shenyang authorities denied knowledge of a plan to sell the shares. Spokespersons for Brilliance China and FAW did not comment initially, BMW did not want to comment on the information./men/niw/stk