Renault and Brilliance China Automotive Holdings (CBA) have inked a deal to create a joint venture in China for the manufacture and sale of light commercial vehicles (LCV).
Groupe Renault will purchase from CBA a 49% equity interest in Shenyang Brilliance JinBei Automobile (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.
“As a global automotive company, Groupe Renault is entering into a promising and high potential Chinese LCV market which accounts for upwards of 3m vehicles per year,” said Renault chairman and CEO, Carlos Ghosn.
“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.”
For his part, CBA major shareholder, Qi Yumin added: “Brilliance, as a historical top Chinese player in the LCV market through its brand JinBei, is conjoining with 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.”
Beyond existing JinBei vehicles, the joint venture will also develop, manufacture and distribute new vehicles and services under both the JinBei and Renault brands.
The transaction remains subject to customary regulatory approvals in the PRC as well as Hong Kong and is subject to CBA shareholders’ approval.