Renault SA (RNO.FR) said Friday that it has signed a contract with Brilliance China Automotive Holdings Ltd. (1114.HK) to form a joint venture to manufacture and sell light commercial vehicles.
The French car maker said the vehicles would be sold under the Jinbei, Renault and Huasong brands with the goal of achieving 150,000 sales annually by 2022 as well as an acceleration of electrifying powertrains. Multi-purpose vehicles, medium vans and heavy vans will be produced locally, it added.
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The new joint venture will be known as Renault-Brilliance-Jinbei Automotive Co., with manufacturing operations in the Dadong district of China, the car maker said.
In order to form the joint venture, Groupe Renault is purchasing a 49% equity interest in Shenyang Brilliance Jinbei Automobile Co. The framework cooperation agreement for this joint venture was signed in July, said Renault as it confirmed that Thierry Aubry has been named as the chief executive of the joint venture.
Carlos Ghosn, chief executive of Groupe Renault, said: "We see China not only as the biggest car market worldwide, but also as a trend setter for the auto industry."
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(END) Dow Jones Newswires
December 15, 2017 02:51 ET (07:51 GMT)