Groupe Renault and Brilliance China Automotive Holdings Limited (Brilliance) have formed a joint venture to manufacture and sell light commercial vehicles (LCV) in China under the Jinbei, Renault and Huasong brands.
The companies have the goal of achieving 150,000 sales annually by 2022 and an acceleration of electrifying powertrains.
The new joint venture will be known as Renault-Brilliance-Jinbei Automotive Co. Ltd. with manufacturing operations in the Dadong District of Shenyang, China.
It will enter three segments— MPVs, medium vans and heavy vans. The Chinese LCV market is reaching upwards of 3 million units annually.
Carlos Ghosn, chairman and CEO of Groupe Renault, 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 50 billion euros in research and development 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."
To form the joint venture, Groupe Renault is purchasing a 49% equity interest in Shenyang Brilliance Jinbei Automobile Co. (SBJ).
SBJ is being restructured into a joint venture with Brilliance China taking a 51% share, with Groupe Renault owning 49%.
The companies had signed a framework cooperation agreement to pursue the formation of the joint venture in July of this year.