Boulogne-Billancourt, France / Hong Kong – 2017/07/05, Groupe Renault and Brilliance China Automotive Holdings Limited (CBA) today announce that they have signed a binding framework cooperation agreement covering the main principles of the formation and operation of a joint venture (JV) in China focusing on the manufacturing and sale of light commercial vehicles (LCV).
To facilitate the formation of the JV, CBA will acquire a 100% holding in Shenyang Brilliance JinBei Automobile Co., Ltd. (SBJ), a leader in the Chinese LCV market1 with a strong network and market presence throughout China, after which Groupe Renault will purchase from CBA a 49% equity interest in SBJ resulting in a restructured joint venture company held by CBA (51%) and Groupe Renault (49%).
“As a top global automotive company, 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 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.” said Mr. 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.” declared Mr. Wu Xiao An, Chairman of CBA.
Beyond the 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 and Hong Kong and is subject to CBA shareholders’ approval.
1 LCV category in China constitutes all vehicles suited to professional or mixed usage
About Groupe Renault
Groupe Renault has been making cars since 1898. Today it is an international multi-brand group, selling close to 3.2 million vehicles in 127 countries in 2016, with 36 manufacturing sites, 12,700 points of sales and employing more than 120,000 people. To meet the major technological challenges of the future, including the development and sale of electric vehicles, and to continue its strategy of profitable growth, Groupe Renault is harnessing international expansion and the complementary synergies of its five brands, Renault, Dacia, Renault Samsung Motors, Alpine and LADA.
Groupe Renault also has strong experience and a proven track record of establishing partnerships with other automotive makers in the light commercial vehicle segment, including Nissan, Daimler Europe, General Motors Europe and Fiat Europe.
About CBA
CBA Group is engaged in the manufacture and sale of minibuses and automotive components in the PRC through its major operating subsidiaries, including SBJ. In 2016, SBJ sold 62,673 minibuses and MPVs in China. SBJ began to manufacture and sell JinBei minibuses in 1990 and have sold over 1.3 million vehicles over the years.
In addition to its minibus and automotive components businesses, CBA also owns a 50% equity interest in its major joint venture BMW Brilliance Automotive Ltd. which is engaged in the manufacture and sale of BMW vehicles in the PRC.
About JinBei
JinBei brand is well recognized on the Chinese market: 268,485 unit sales of JinBei branded vehicles were reported in 2016.
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