Groupe Renault and Brilliance China Automotive Holdings Limited (CBA) have signed a binding framework cooperation agreement covering the main principles of the formation and operation of a joint venture (JV) in China focusing on the manufacturing and sale of light commercial vehicles (LCV).

To facilitate the formation of the JV, CBA will acquire a 100% holding in Shenyang Brilliance JinBei Automobile Co., Ltd. (SBJ), a leader in the Chinese LCV market1 with a strong network and market presence throughout China, after which Groupe Renault will purchase from CBA a 49% equity interest in SBJ resulting in a restructured joint venture company held by CBA (51%) and Groupe Renault (49%).

"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. 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," said Carlos Ghosn, Chairman and CEO of Renault.

"Brilliance, as a historical top Chinese player in the LCV market through its brand JinBei, is conjoining with Renault LCV and bringing to the joint venture its own expertise in the Chinese LCV market with manufacturing facilities, engineering resources and distribution network. 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, major shareholder of CBA.

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