The Renault Group and Brilliance China Automotive Holdings Limited (CBA) are to create a joint venture in China to produce and sell LCVs.

Brilliance V3.

The two carmakers have signed a binding framework cooperation agreement on the JV, which will see Renault purchase from CBA a 49% equity interest in Shenyang Brilliance JinBei Automobile Co (SBJ) with SBJ being restructured into a joint venture company owned by CBA (51%) and the Renault Group (49%).

Said to be fully operational in the near future, the joint venture will develop, manufacture and distribute new vehicles and services under both the JinBei and Renault brands.

Carlos Ghosn, chairman and CEO of Renault, said: “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.”

The transaction remains subject to customary regulatory approvals in the PRC and Hong Kong and is subject to CBA shareholders’ approval.