Renault has agreed to buy almost half of Brilliance China Automotive Holdings’ (BCA’s) unprofitable minibus unit, giving the car maker’s light commercial vehicles a foothold in the world’s largest car market. The companies agreed to invest a combined 1.5-billion yuan ($221m) in Shenyang Brilliance Jinbei Automobile in proportion to their stakes, Brilliance said on Wednesday. As part of the deal, Renault will pay 1-yuan to take a 49% stake in the subsidiary. Brilliance shares gained as much as 2.3% in Hong Kong trading. Renault president Carlos Ghosn is using the company’s strength in commercial vehicles to expand in China and help rescue a struggling unit of Brilliance after having restored the fortunes of industry giants from France’s biggest car maker to Japan’s Nissan Motor. Shenyang Brilliance Jinbei reported losses of 1.1-billion yuan over the past two years and 3.6-billion yuan in liabilities at the end of 2016. "By joining hands with BCA, Renault aims at becoming a major ligh...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.