Renault China JV is seeking to restructure its debts and bring in capital from new strategic investors according to a recent story in Free Malaysia Today.
Renault CV JV Place Hopes on New Investors
Renault‘s commercial vehicle manufacturing joint venture in China is seeking bankruptcy restructuring in court in the latest in a series of setbacks for the French automaker and local partner Brilliance China Automotive Holdings.
In an article in Free Malaysia Today, it reported that in a filing to the Stock Exchange of Hong Kong, state-owned Brilliance China, which controls 51 per cent of the joint venture, said Renault Brilliance Jinbei Automotive has halted production and “has not been able to meet its current financial obligations.”
The venture will now seek to restructure its debts and bring in capital from new strategic investors. Brilliance China did not disclose the debts of the unit.
The four-year-old joint venture makes vans and other light commercial vehicles under the brand Jinbei, a well-established marque in China dating back to 1989.
It has also been reported by Reuters that 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.
In a five-year turnaround plan announced in January, Renault said it would reinvent its business model in China as part of a shift to new energy vehicles aimed at supporting the overall group’s return to profit by 2023.
Source: Free Malaysia Today