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Power XinChen formally signs licensing agreement on Prince engines with BMW

A grand signing ceremony to celebrate licensing ofBMW’s Prince engines to Power XinChen was held in Shen Yang on June 10thin the morning, where Guenter Wollny, senior vice-president of BMW group, Wangshiping, Vice President of Brilliance Auto group, Wang Yunxian, General Managerof Power XinChen jointly signed the cooperative agreement. Qi Yumin, Chairmanand President of Brilliance Auto group also addressed attendees in the event.

The agreement represents another significantachievement in the deepening cooperation between the two parties afterlicensing of N20 engines by the BMW group.

Against the backdrop of economic globalization and afiercely competitive market, automotive engine technology has become part ofcore competencies essential to the development of local OEMs in China. In thecourse of more than a decade of good-faith cooperation, Brilliance and BMW haveforged a profound friendship as evidenced by their mutual commitment to beingthe exclusive strategic partner in China as well as BMW’s multi-faceted supportand assistance, especially in terms of engine design and production. Anothertestament to this special relationship is that on March 28th, witnessedby Chinese President Xi Jinping and German Chancellor Angela Merkel, Brillianceand BMW entered into a memorandum of understanding to further deepen all-round cooperativepartnership in the field of automotive technology.

On June 26th,2014, thelicensed production of BMW’s N20 engines was formally launched at Power XinChen’smanufacturing plant.     It is the firsttime in its hundred-year history that the premium automaker has authorized an outsideindustry player to produce its reputable engines. By far, PXC has deliverednearly 30,000 N20 engines that are in full compliance with top qualitystandards required by BMW, earning its high praise. The N20 project offers arare opportunity for the engine maker to not only absorb on a long-term basis BMW’sadvanced management concepts, operations ideas and engine technology, but alsoto enhance its own technical expertise.

While the Prince engines under today’s licensingagreement are actually a product family comprising an existing fully-fledged 1.6L base model and a more powerful 1.8L variant. Per the terms of the deal, both modelsare to be localized by Power XinChen under BMW’s all-round guidance and supportcovering a wide spectrum of aspects including design & development, industrialization,purchasing, quality and project management. Many observers believe the signingof the agreement marks a momentous milestone in Chinese OEMs’ effort to master cutting-edgecore engine technology through cooperation with leading international industryparticipants.

P.S. As one of the best in its class, the engineseries boasts a host of state-of-the-art technologies such as twin-scrollturbo-charger, high-precision GDI, CVVL and CVVT, giving it robust power andexcellent fuel economy. It is nothing short of an embodiment of Germany’ designprowess and pursuit of superb build quality.

The Prince has been extensively used in BMW mini,1 and3 series since its inception. In 2014, the in-line four won its eighthconsecutive International Engine of the Year award in the 1.4 to 1.8-litercategory, enjoying a remarkable winning streak from 2007.It was also ranked in2011 among Ward’s 10 Best Engines by Ward’s Autoworld magazine, a prominentindustry watcher headquartered in the US. The honors are a mark of recognition forthe Prince’s outstanding performance from the North America region and theworld market at large.

Follow-up News Bulletin

Wei Hong, Deputy party secretary of Sichuan CPC Provincial Committee andGovernor of Sichuan Provincial People’s Government met in Cheng Du on June 11thin the afternoon with members of the BMW delegation who attended the signingceremony the day before. During the meeting, he briefed them on thesocio-economic development situation of Sichuan and said that the Sichuan CPCProvincial Committee and the People’s Government of Sichuan attach greatimportance to promoting the growth of the automotive industryin the region. According to him, many well-known domestic and foreign carmanufacturers enticed by the incentive of preferential policies, have set upbusiness operations in Sichuan. He also expressed hope that both BMW andBrilliance would strive to parlay this cooperation into something bigger andwas eager to see from the BMW group more premium project initiatives to belaunched in Sichuan in the future.

In attendance were also LiuJie, Deputy Governor of Sichuan, Cai Jing, Deputy Secretary General of SichuanProvincial Government, Luo Qiang, Party Secretary of Mian Yang CPC MunicipalCommittee, Chen Xinyou, Director of Sichuan Provincial Commission of Economyand Informatization, Liu Zhongbo, Head of Provincial Bureau of InvestmentPromotion and Office of Important Projects, Wu Guanglei, Deputy Chief ofSichuan Provincial Commission of Development and Reform.