The parent company behind the Renault and Dacia brands has signed an agreement to enter a joint venture with a major Chinese vehicle manufacturer on the construction and sale of light commercial vehicles (LCVs).
Groupe Renault and Brilliance China Automotive Holdings Limited (CBA) are jointly acquiring the Shenyang Brilliance JinBei (SBJ) Automobile Company, which makes vans, pick-ups and minibuses. Under the JV, CBA will buy a 100% holding in SBJ and Groupe Renault will subsequently take a 49% stake.
“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,” said Carlos Ghosn, Chairman and CEO of Renault.
“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.”
“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,” said 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, in China and potentially beyond.