Finance
Renault’s China JV with Brilliance heading into restructuring
Published by maria gbaf
Posted on December 23, 2021
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by maria gbaf
Posted on December 23, 2021
2 min readLast updated: January 28, 2026
Renault's joint venture with Brilliance Auto Group in China is restructuring due to financial issues, affecting their electric van production plans.
PARIS (Reuters) -Renault on Wednesday confirmed a report that its joint venture with Chinese carmaker Brilliance Auto Group had run out of cash and is heading for a restructuring.
“In light of (the JV’s) inability to meet its current financial obligations, the company’s board of directors has resolved to initiate a restructuring process,” a spokesperson said.
A source in September told Reuters Renault was in discussions to end its joint venture to build vans with the state-backed Chinese company.
The tie-up dates back to 2017, when Renault and Brilliance China Automotive Holdings Ltd established manufacturing operations in Shenyang, the provincial capital of Liaoning, and set out to make a push into electric commercial vans in particular.
The Chinese market has proved difficult for some foreign producers – sales faltered right before the COVID-19 pandemic, which walloped the industry.
Renault last year ditched its main passenger car business in China following poor sales at its loss-making venture with Dongfeng Motor Group. But it is making a fresh attempt to crack the market with Geely Holding Group, announcing in August a hybrid vehicle joint venture.
Bloomberg earlier on Wednesday reported that the French carmaker had decided to initiate a restructuring process.
(Reporting by Tassilo HummelEditing by Chizu Nomiyama and Grant McCool)
The main topic is Renault's joint venture with Brilliance Auto Group in China facing restructuring due to financial difficulties.
Renault is restructuring its joint venture because it ran out of cash and could not meet its financial obligations.
Renault plans to pursue a new hybrid vehicle joint venture with Geely Holding Group in China.
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