“As a top global automotive company, Groupe Renault is entering into a promising and high-potential Chinese LCV market which accounts for upwards of 3m 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.”
To form the joint venture, Renault will purchase a 49% equity interest in Shenyang Brilliance JinBei Automobile Company (SBJ) with the other 51% held by CBA.
“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 Qi Yumin, chairman of Huachen, the major shareholder in CBA.
In 2016, SBJ sold 62,673 minibuses and multi-purpose vehicles in China.
In addition to its minibus and automotive components businesses, CBA also owns a 50% equity interest in its major joint venture BMW Brilliance Automotive.
In 2015, Renault sold 387,000 LCVs globally, giving it a 3.76% share of the overall market.