Renault creates a second JV in China with Brilliance
- Already partnering with China's Dongfeng for the manufacture of passenger cars in Wuhan, China, Renault will create another joint venture (JV) with another Chinese manufacturer, Brilliance. It will manufacture and market light commercial vehicles primarily in China.
- Brilliance manufactures and markets passenger cars in partnership with German BMW, but it also has a subsidiary that manufactures small commercial vehicles (Shenyang Brilliance Jinbei Automobile) that is totally foreign to the agreement between Brilliance and BMW. Renault will have a 49% interest in the new JV, while Brilliance will retain 51%. According to the press release issued today, Renault aims to become a major player in the LCV market in China, a market estimated at 3 million units per year In 2016.
- Shenyang Brilliance Jinbei Automobile sold 62,673 vehicles in China and 43,178 units in the first half of 2017, representing 2% of the Chinese LCV market. The road will be long for Renault, with the help of Brilliance, to become a major player in the LCV market in China, but the agreement signed this month marks the beginning of a new opportunity for Renault to progress on the Chinese market, on which Renault arrived later than all other major western manufacturers. The objective of Renault is to sell 800,000 vehicles in China in 2020, in partnership with both Dongfeng and Brilliance.
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