Carlos Ghosn, Chairman and CEO of Groupe Renault, speaks at the inauguration ceremony. (Photo: People's Daily)
Shenyang (People's Daily) - French automaker Renault and its partner Brilliance China Automotive Holdings Limited signed to form a joint venture Friday to manufacture and sell light commercial vehicles (LCV) under three brands.
The new joint venture Renault-Brilliance-Jinbei Automotive Co., Ltd. is based in the Dadong District of Shenyang, capital of northeast China’s Liaoning province. It will produce three key types of cars, including MPVs, medium vans and heavy vans, under the Jinbei, Renault and Huasong brands, aiming to reach an annual sales of 150,000 by 2022.
To form the JV, Groupe Renault is purchasing a 49 percent equity interest in Shenyang Brilliance Jinbei Automobile Co., and now the SBJ is being restructured into a JV owned 51 percent by Brilliance China and 49 percent by Groupe Renault.
From L to R are Ashwani Gupta, alliance senior president of Renault-Nissan LCV,Carlos Ghosn, Chairman and CEO of Groupe Renault, Qi Yumin, Chairman of Brilliance Automotive, and Wu Xiaoan, Chairman of Brilliance China Automotive Holding Ltd (Photo: People's Daily)
Renault has been investing and expanding in China for four years now with joint ventures focused on passenger cars, commercial vehicles and electric vehicles, said Carlos Ghosn, Chairman and CEO of Groupe Renault.
Chinese LCV market is reportedly expanding with over 3 million sales a year. The JV is aimed to develop products tailored to the Chinese markets as China is seen as the biggest car market worldwide and a trend setter for the auto industry, according to Ghosn.
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, quoting Qi Yumin, Chairman of Brilliance Automotive as he said at the inauguration ceremony.
The companies had signed a framework cooperation agreement to pursue the formation of the joint venture in July of this year. Now the JV provides a platform for all the partners to give full play of complementary advantages.
(Compiled by Fang Tian)