Renault forms an alliance with chinese manufacturer Brilliance to build LCVS.
RENAULT HAS SIGNED AN AGREEment with Chinese vehicle maker Brilliance to build and sell light commercial vehicles in China.
Some will be built and sold as Renaults, and others as Jinbeis.
Groupe Renault and Brilliance China Automotive Holdings Limited (CBA) announced in July that they have signed a binding framework cooperation agreement covering the main principles of the formation and operation of a joint venture.
CBA will acquire a 100 percent holding in Shenyang Brilliance Jinbei Automobile Co (SBJ) which has a strong network and market presence throughout China.
Groupe Renault will then buy from CBA a 49 percent equity interest in SBJ resulting in a restructured joint venture company in which CBA holds a 51 percent equity.
“As a top global automotive company, Groupe Renault is entering into a promising and high potential Chinese LCV market which accounts for upwards of three million vehicles per year,” says 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.”
Qi Yumin, the chairman of Huachen, a major shareholder of CBA says Brilliance, “as a historical top Chinese player in the LCV market through its brand Jinbei, is…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...”
CBA chairman Wu Xiao An says his company has a lot of experience operating automotive businesses with industry partners.
He expects the new joint venture to expand CBA’S existing minibus operations and develop new growth opportunities for both the Jinbei and Renault LCV businesses and “become a significant player in the Chinese market.”
Besides manufacturing and selling existing Jinbei vehicles, the joint venture will develop, manufacture and distribute new vehicles under both the Jinbei and Renault brands.
The transaction is subject to customary regulatory approvals in China and Hong Kong and is subject to CBA shareholders’ approval.
Renault sold close to 3.2 million vehicles in 127 countries in 2016, with 36 manufacturing sites, 12,700 points of sales and employed more than 120,000 people.
To meet the technological challenges of the future, including the development and sale of electric vehicles, Renault says it’s “harnessing international expansion and the complementary synergies” of its five brands, Renault, Dacia, Renault Samsung Motors, Alpine and Lada.
Renault has a proven track record of establishing partnerships with other LCV makes, including Nissan, Daimler Europe, General Motors Europe and Fiat Europe.
CBA Group builds and sells minibuses and automotive components in China through its major operating subsidiaries, including SBJ.
In 2016, SBJ sold 62,673 minibuses and MPVS. It began manufacturing and selling Jinbei minibuses in 1990 and has sold more than 1.3 million vehicles over the past 26 years.
In addition to its minibus and automotive components businesses, CBA also owns a 50 percent equity interest in its major joint venture, BMW Brilliance Automotive, which makes and sells BMWS in China.
Jinbei vehicles are sold under three platforms, Haise, Grand Haise and Granse. The Haise minibus is a licence-built version of the Toyota Hiace.
Jinbei launched a new premium MPV under the new Huasong brand at the end of 2014.
Jinbei also builds special purpose vehicles, including police cars, ambulances and public services vehicles.
Last year, 268,485 Jinbei branded vehicles were sold in China.
Renault’s Chinese joint venture partner includes the Haise minibus and van in its product range. The Haise is a licence-built Toyota Hiace.