Biz / Auto

French-Chinese auto venture to deepen cooperation

French automaker Renault Group and Brilliance China Automotive Holdings Ltd signed a contract today to set up a joint venture to deepen cooperation on commercial vehicles in China.
Ti Gong

Qi Yumin, chairman of Brilliance Automotive Group Holdings Co Ltd and Carlos Ghosn, chairman and CEO of Renault Group

French automaker Renault Group and Chinese car maker Brilliance China Automotive Holdings Ltd today signed a contract to set up a joint venture to deepen cooperation in the field of commercial vehicles in China.

The new joint venture, named Renault-Brilliance-Jinbei Automotive Co Ltd, will focus on the manufacturing and sales of commercial vehicles. Stakes in the joint venture will be 51-49, with 51 held by Brilliance China Automotive Holdings Ltd and 49 by Renault Group. 

The joint venture aims to manufacture Renault light commercial vehicles in China by 2020, and will also develop, manufacture and sell new vehicles under Jinbei, Renault and Huasong brands with the goal of achieving 150,000 sales annually by 2022. 

With manufacturing operations in Shenyang, the joint venture is set up to locally produce three key segments, including multi-purpose vehicles, medium vans and heavy vans. 

Both sides are looking forward to the growing market of commercial vehicles in China, where more than 3 million light commercial vehicles were sold annually, according to the companies.

"By joining hands with Brilliance China Automotive Holdings, Renault Group aims to become a major light commercial vehicle player in China," said Carlos Ghosn, chairman and chief executive officer of Renault Group. 

"Renault-Brilliance-Jinbei Automotive Co will develop products tailored to the Chinese market. We will bring our management expertise and know-how on the products and technology," he added.

Qi Yumin, chairman of Brilliance Automotive Group Holdings Co Ltd, said that the joint venture will focus on three areas: commercial vehicles, new-energy commercial vehicles and customized commercial vehicles. 

"We are going to bring to the joint venture its own expertise in manufacturing facilities, engineering resources and distribution networks. This win-win partnership will create huge economic and social benefits as well as accelerate the development of the automotive industry in China," Qi added.

The joint venture provides a platform for both companies to bring complementary strengths together, with Brilliance Auto delivering an existing dealer network, project engineering capability and manufacturing capacity. Renault Group will bring expertise in new technologies, core engineering capability and business management expertise. 

Thierry Aubry has been named chief executive officer of the joint venture. Aubry’s background includes retail, manufacturing and distribution experience in both China and France.

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