BMW is buying luxury brand luxury car maker BMW for $3 billion in a deal that will make the German automaker more affordable than gas-powered cars.
The acquisition, announced Thursday, comes on the heels of an agreement that BMW announced earlier this month that it would buy luxury brand Mercedes-Benz and Mercedes-AMG for $6 billion in cash and stock, along with a large amount of cash in the form of $2 billion in shares of the former.
The purchase comes at a time when BMW is facing increasing competition from the likes of Audi, Audi AMG, Mercedes, and Audi S.
The deal, which also includes a stake in Audi’s luxury brands, could have a significant impact on the automaker’s sales.
In the U.S., BMW sold 1.3 million luxury sedans in 2016, a figure that was more than double the 1.4 million sold in 2015.
In Europe, the automakers luxury brands sold about 1.7 million cars in 2016.
In Europe, BMW will be able to tap into its global sales pipeline by combining its brand of luxury with its brand’s extensive production capabilities in the U, Europe, and China.
The BMW deal is the latest in a series of consolidation moves by the German carmaker, which has been trying to position itself as a more environmentally friendly company.
BMW will now be able take advantage of its factory in China, which is home to a large number of car parts manufacturing plants.
This deal will enable BMW to expand its supply chain even further, with the carmaker’s factory in the city of Shenzhen also expanding in the future.