The “marriage” between brilliance group and Renault is facing difficulties.
Recently, an employee of brilliance Renault gold cup disclosed to surging news that a factory of brilliance Renault gold cup has been shut down for 3 months. At present, brilliance Renault golden cup has stopped paying wages and only paid medical insurance for employees.
It is understood that front-line employees including him received the notice of “temporary holiday” from the company about three months ago. At the beginning of December, brilliance Renault golden cup began to have a holiday for all employees. As for the commencement time, the employee told surging news that he was informed of “waiting for notice”.
Regarding the suspension, holiday and salary suspension of brilliance Renault golden cup, surging news has also been confirmed by another employee of brilliance group.
Surging news repeatedly dialed the contact numbers listed on the official website of brilliance Renault golden cup, but no one answered.
Brilliance Renault golden cup, a “Sino French hybrid”, was given high expectations when it was founded, relying on China’s “national divine car” and France’s second largest car enterprise. But after only four spring and autumn, it is really sad to fall into such a dilemma.
marriage
On December 15, 2017, the founding ceremony of brilliance Renault Shenyang Jinbei Automotive Company Limited(600609) was held in Shenyang. Qi Yumin, then Secretary of the Party committee and chairman of brilliance automobile, attended the ceremony on behalf of brilliance, while the French representative was Carlos Ghosn, then chairman and CEO of Renault group.
After the establishment of the joint venture, brilliance holds 51% of the shares, Renault holds 49% of the shares, and France sends Thierry Aubry as the CEO of the joint venture.
Just before that, in July 2017, brilliance group announced that it would sell 49% equity of brilliance golden cup to Renault at a symbolic price of 1 yuan. As soon as this news came out, it triggered a heated debate in the society. However, brilliance, which seems to be “blood deficit”, has its own considerations.
Born in 1989, Shenyang Jinbei Automotive Company Limited(600609) has long been known as the “national God car”. It once owned hundreds of models such as golden cup sea lion and golden cup Gareth, which sell well all over the country. According to the information on the official website, Shenyang Jinbei Automotive Company Limited(600609) ownership exceeded 1 million in 2010.
In 2010, Shenyang Jinbei Automotive Company Limited(600609) sales reached 100000, while in 2016, its sales fell all the way to 23000. The weak sales volume directly led to the loss of Jinbei. In 2016, Shenyang Jinbei Automotive Company Limited(600609) net profit decreased from 36 million yuan in 2015 to 208 million yuan.
Taking over a declining brand, Renault is also playing a “small abacus” behind it.
As the second largest car company in France, Renault has a lot of experience in the field of commercial vehicles. In 2016, the global sales volume of Renault light commercial vehicles reached 443900, and the light commercial vehicles (excluding pickup trucks) ranked first in the European market share, with a market share of 15.9%.
However, Renault has always been an unknown role in the Chinese market. In 2013, Renault bought the Chinese market through cooperation with Dongfeng Automobile Co.Ltd(600006) . However, at that time, the joint venture car enterprises in the Chinese market had already formed a stable pattern. Low popularity, low cost performance and slow renewal make Renault a marginalized brand in China’s auto market. The reputation of “national God car” and Shenyang Jinbei Automotive Company Limited(600609) decades of complete sales network are what Renault urgently needs.
crack
At the beginning of its establishment, brilliance Renault golden cup had only golden cup models in its product planning, while Renault brand models were scheduled to be listed in China in 2020. Until the end of 2020, the golden cup sea lion king, the first joint venture vehicle of brilliance Renault golden cup, was not listed. The delay in introducing new models after the joint venture is very rare in joint venture car enterprises.
Zhang Xiang, an auto analyst, told surging news that both Renault and brilliance are reluctant to invest in the joint venture, which is an important reason for the decline of brilliance Renault gold cup.
It is difficult to innovate in products, but brilliance Renault gold cup has repeatedly encountered challenges in management.
The securities times once reported that the French executives of brilliance Renault golden cup have been planning to dismiss old Chinese employees since they entered the joint venture, and have been laid off many times in 2019.
In 2020, Guillaume Sicard took office and succeeded ouyangjie as CEO of the company. In the same year, Renault group released a new strategy in China, withdrew from the passenger car market and focused on the field of light commercial vehicles and electric vehicles.
However, Renault did not seem to bring a turnaround to the commercial vehicle joint venture after putting down the passenger car business that was difficult to improve.
On the one hand, the two sides did not invest enough in the joint venture. On the other hand, the bankruptcy of brilliance also struck a fierce blow to the marriage.
On November 20, 2020, brilliance Group officially entered the bankruptcy reorganization procedure. Although brilliance group said that this restructuring does not involve a joint venture with Renault, it is generally believed in the industry that this may become the last straw to overwhelm the camel.
In this regard, Cui Dongshu, Secretary General of the passenger car Federation, once wrote in the article, “consumers buy cars because they trust the car enterprises in the future use stage and will be responsible for the product responsibility of the vehicles. Now the enterprises lose their trust, and there will be no hope for brilliance Renault, Brilliance China and other car enterprises to turn over in the future.”
In August 2021, Renault found a new partner – Geely. The two sides focused on accelerating the implementation of Renault’s “Renault plan” in the Chinese and Korean markets.
(surging News)
