Renault's China JV with Brilliance heading into restructuring (updated)

Brilliance China Automotive Holdings

22/12/2021 19:41

(Adds spokesperson's quote, background)
    PARIS, Dec 22 (Reuters) - Renault  RENA.PA  on Wednesday
confirmed a report that its joint venture with Chinese carmaker
Brilliance Auto Group  1114.HK  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.  urn:newsml:reuters.com:*:nL1N2QB0ET
    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  0489.HK . But it is making a fresh attempt
to crack the market with Geely Holding Group, announcing in
August a hybrid vehicle joint venture.  urn:newsml:reuters.com:*:nL1N2PG02N
    Bloomberg earlier on Wednesday reported that the French
carmaker had decided to initiate a restructuring process.
 urn:newsml:reuters.com:*:nL4N2T733I

 (Reporting by Tassilo Hummel
Editing by Chizu Nomiyama and Grant McCool)
 ((Tassilo.Hummel@thomsonreuters.com;))