New Zealand LCV - - CONTENTS -

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.

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