10.29 Brilliance to run Zhonghua, Jinbei brands separately

Brilliance to run Zhonghua, Jinbei brands separately

http://autonews.gasgoo.com/auto-news/1012756/Brilliance-to-run-Zhonghua-Jinb
ei-brands-separately.html

Shanghai, October 30 (Gasgoo.com) Brilliance China announced today that
Shenyang Brilliance Jinbei Automotive Co. would sell its 51% stake in
Brilliance's own-brand Zhonghua sedan operations to Brilliance Auto Group
for 494 million yuan ($72.33 million), sina.com said, citing an insider.

 

The source said the move is part of the strategic planning of Brilliance
Auto, the Chinese partner of BMW. In the future, Brilliance will have
separate operations of its two brands Brilliance Zhonghua and Brilliance
Jinbei, which will also have different dealership networks. This plan has
reportedly got regulatory approval.

 

After selling its shares in the Brilliance's passenger car business, Jinbei
will focus on making light buses and medium-size commercial vehicles and
prepare for the R&D of heavy-duty truck products. The proceeds from the
stake sale will be used for Jinbei's light bus business and the joint
venture with BMW. 

 

Brilliance China makes cars under its Zhonghua brand and builds vans, small
buses and light trucks under the Jinbei brand. With new models launched,
sales of its Zhonghua-branded cars and Jinbei-badged vehicles grew 28% and
21%, respectively, from a year earlier in the first nine months of this
year.

 

Shenyang Brilliance Jinbei Automotive Co., once a pioneer among own brand
Chinese automakers, is now losing market share in the fast growing domestic
market, Automotive News said earlier this week.

 

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