French major bullish on Chinese LCV market which sees sales of over 3 million units a year.
05 Jul 2017 | 5861 Views | By Autocar Pro News Desk
The Renault Group and Brilliance China Automotive Holdings (CBA) are to set up a joint venture in China for the manufacture and sale of light commercial vehicles (LCVs).
For the JV, Renault will purchase from CBA a 49 percent equity stake in Shenyang Brilliance JinBei Automobile Co (SBJ) with SBJ ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
The Renault Group and Brilliance China Automotive Holdings (CBA) are to set up a joint venture in China for the manufacture and sale of light commercial vehicles (LCVs).
For the JV, Renault will purchase from CBA a 49 percent equity stake in Shenyang Brilliance JinBei Automobile Co (SBJ) with SBJ being restructured into a joint venture company owned by CBA (51%) and Groupe Renault (49%). The project will facilitate the common development of LCV business in China by Groupe Renault and CBA.
“Groupe Renault is entering into a promising and high potential Chinese LCV market which accounts for upwards of 3 million vehicles per year. By joining hands with CBA, Groupe Renault aims to become a major LCV player in China. We will bring our management expertise and know-how on the products and technology,” said Carlos Ghosn, Chairman and CEO of Renault.
“Brilliance, as a historical top Chinese player in the LCV market through its brand JinBei, is partnering Renault LCV and bringing to the joint venture its own expertise in the Chinese LCV market with manufacturing facilities, engineering resources and distribution network. With the strong support of various government authorities, we see this venture to be fully operational in the near future to fulfill Chinese customers and shareholders," said Qi Yumin, chairman of Huachen, major shareholder of CBA.
“With our strong experience of operating automotive businesses with industry partners, we expect our new joint venture to upraise our existing minibus operations while developing new growth opportunities for both the JinBei and Renault LCV businesses and become a significant player in the Chinese market,” added Wu Xiao An, chairman of CBA.