Groupe Renault and Brilliance China Automotive have signed a joint venture (JV) contract to manufacture and sell light commercial vehicles (LCV) in China in three segments with three brands.
The new JV, which will be known as Renault-Brilliance-Jinbei Automotive, will manufacture MPVs, medium vans and heavy vans under the Jinbei, Renault and Huasong brands.
It aims to make 150,000 sales annually by 2022 and speed up electrifying powertrains.
The JV will have manufacturing operations in the Dadong District of Shenyang.
To form the JV, Groupe Renault is acquiring a 49% equity interest in Shenyang Brilliance Jinbei Automobile Co (SBJ). Brilliance will own the remaining 51% stake.
The companies had signed a framework cooperation agreement in July this year to pursue the JV formation.
Groupe Renault chairman and CEO Carlos Ghosn said: “Groupe Renault has been investing and expanding in China for four years now with joint ventures focused on passenger cars, commercial vehicles and electric vehicles.
"The Renault-Nissan-Mitsubishi Alliance gives us access to a wide array of technologies, with more than €50bn in R&D investment over the next six years, part of which will enable Renault-Brilliance-Jinbei Automotive Company to develop products tailored to the Chinese market. We see China not only as the biggest car market worldwide, but also as a trend setter for the auto industry.”
The JV offers a platform for the partners to bring complementary strengths together. Brilliance provides an existing dealer network of 220, project engineering capability and manufacturing capacity, and Renault brings expertise in new technologies, core engineering capability and business management expertise.
Brilliance Automotive Group chairman Qi Yumin said: “Brilliance and Groupe Renault are joining hands to build a world-class model for the development of LCVs. It will change the map of the Chinese and even global LCV market.
“Both companies will build the joint venture into a world-renowned leader in three areas— commercial vehicles, new energy commercial vehicles and customized commercial vehicles. This win-win partnership will create huge economic and social benefits, accelerating the development of automotive industry in Liaoning Province and China.”
