Huachen Automotive Group Holdings Co. Ltd.,known by its brand name Brilliance Auto Group,is a Chinese multinational automobile manufacturer holding company headquartered in Shenyang.[6] Its products include automobiles,microvans,and automotive components.[7] Its principal activity is the design,development,manufacture,and sale of passenger cars sold under the Brilliance brand. It was established by founding chairman Yang Rong.
Brilliance Auto Group holds a 42.32% shareholding in the Bermuda-incorporated Brilliance China Automotive Holdings Limited (commonly known as Brilliance Auto or Brilliance China),which is listed on the Frankfurt and Hong Kong stock exchanges.[8]
Brilliance China Automotive Holdings (Brilliance Auto) previously produced "Brilliance" branded cars under manufacturing unit Brilliance Motor,which has since been sold to BMW. Brilliance Auto also holds 25% of BMW Brilliance,a joint venture with BMW which produces,distributes,and sells BMW passenger cars in mainland China. It also holds a 51% stake of Renault Brilliance Jinbei,a joint venture with Renault which designs,develops,manufactures,and sells light commercial vehicles under the Jinbei,Huasong and Renault brands. As of 2022 (VW),BMW held 100% of the shares in Brilliance Motor,and 75% of BMW-Brilliance,controlling the majority of production capacity under Brilliance.
In 2010,Brilliance Auto Group and its subsidiaries had an annual production capacity of 800,000 vehicles[9] although capacity has come online since. In 2012,the company manufactured almost 650,000 vehicles,the eighth-largest production of any Chinese vehicle maker that year.[10] Roughly 70% of production was consumer sedans.
History
Origins
The origins of Brilliance Auto Group (officially Huachen Automotive Group Holdings Company Limited) can be traced to a Chinese government-owned automobile factory which under founding chairman Yang Rong,became one of the leading Chinese makers of minibuses between 1991 and 2002.[6][11]
1990s
Brilliance rose in the 1990s under Yang Rong to become China’s largest automaker.[12]
On 9 June 1992,a subsidiary,Brilliance China Automotive Holding Limited was incorporated in Bermuda.[13][14] In the same year,the company was registered as a foreign company in the Hong Kong Companies Registry. Initially,the subsidiary owned 40% stake of Shenyang Jinbei Coach Manufacturing Co. Ltd. (Chinese:沈阳金杯客车制造有限公司),[15] while the rest of the stake was owned by another company,Shenyang Jinbei Automotive Company Limited (Chinese:金杯汽车股份有限公司;SSE:600609).[15][16] The ratio was later changed to 51% owned by Brilliance China Auto and 49% owned by Shenyang Jinbei Automotive.[15]:244 The American depositary shares of Brilliance China Auto were floated on the New York Stock Exchange beginning in 1992[15] as NYSE:CBA. The company intended to delist from NYSE in 2007[17][18] and completed in 2009.[19]
In 1999,the Group injected most of the group assets into the subsidiary,and the shares began to be traded on the Stock Exchange of Hong Kong (now part of Hong Kong Exchanges and Clearing) as SEHK:1114.[20]As of 31December2019[update],Huachen Automotive Group (Brilliance Auto Group) owned 42.32% shares of the listed company as the largest and controlling shareholder.[4]
The Group has another listed associate company that is listing in the Shanghai Stock Exchange:Shenyang Jinbei Automotive Company Limited. As of 31December2019[update],the Brilliance Auto Group,via an intermediate company Shenyang Automobile Industry Asset Management Company Limited (Chinese:沈阳市汽车工业资产经营有限公司),owned 24.38% of the shares of that company as the largest and controlling shareholder.[21] It planned to inject the stake into the major listed company of the group,Brilliance Auto,in 2003.[22] However,the deal collapsed. Nevertheless,Shenyang Jinbei Automotive has not had the controlling interest of Shenyang Jinbei Coach Manufacturing since 1992,which is the predecessor of Brilliance Jinbei[23] (now Renault Brilliance Jinbei).
Shenyang Jinbei Automotive was listed on the stock exchange since 1992.[16] Shenyang Jinbei Automotive and Brilliance Auto Group were separate conglomerates,which the controlling stake of Shenyang Jinbei Automotive was acquired by FAW Group in 1995.[15]:246[24] Shenyang Automobile Industry AMC agreed to acquire a 29.91% stake from FAW Group in 2000.[25][26]
In 2001,Shenhua Holdings agreed to acquire the shares of Shenyang Jinbei Automotive that were held by Shenyang Automobile Industry AMC,[15]:248[26] allowing the Jinbei marque integrated into the Group. However,the deal revised into Brilliance Auto agreed to acquire the stake from Shenyang Automobile Industry AMC in 2003.[22][15]:250–251 Despite the final deal became Brilliance Auto Group acquired Shenyang Automobile Industry AMC directly in April 2018 from the Shenyang Municipal People's Government,which in turn has the full control of the stake of Shenyang Jinbei Automotive that was held by the AMC.[27]
In 2001,Forbes reported that Chairman Yang Rong was China's third-richest businessman.[28] Yang made a failed bid to locate a Brilliance factory in Ningbo,China.[29] Ningbo is near the rich coastal city of Shanghai. In his attempt Yang incurred the wrath of the governor of the province of Liaoning,Bo Xilai (Bo was later convicted on bribery,corruption,abuse of power,and embezzlement,and sentenced to life imprisonment),as Bo demanded that Yang locate the factory in Liaoning,and Yang refused.[29][30] In 2002,Bo seized Yang's stake of $700 million in Brilliance.[12]>Bo also accused Yang of embezzlement,and had an arrest warrant issued against him,precipitating Yang's flight from China in July 2002;since then Yang has been living in exile in the United States.[31][30]
In 2003,BMW and Brilliance Auto signed a deal for the production of BMW-branded sedans in China.[7]
From 2009 to 2011,the group was the eighth-largest automaker in China.[34][35]
2010s to present
Brilliance Auto dealership in Beijing,China
In 2012,Brilliance Auto Group formed a joint venture Brilliance Shineray (Chinese:华晨鑫源) in Chongqing with Shineray Group[36] to produce SWM[37] and Jinbei[36] brand automobiles. As of 2019,Shineray Group owned 80% stake of that joint venture. The rest is owned by 沈阳华益新汽车销售有限公司.[38] The latter is not part of the Brilliance Auto Group,[39][40] but the Group provides a guarantee for some debt of that company.[41]
In 2017,Brilliance Auto also formed another joint venture Renault Brilliance Jinbei with Renault.[43][44] Brilliance Auto acquired the remaining 39.1% stake of Brilliance Jinbei from sister company Shenyang Jinbei Automotive,[45] and then Brilliance Auto re-sold a 49% stake to Renault.[46]
In October 2018,BMW Brilliance,a 50:50 joint venture between BMW and Brilliance,was taken over by BMW by acquiring an additional 25% of available shares.[47][48]
In recent years,Brilliance Group has suffered from long-term poor management and its own brands have been in a state of loss. The main profit comes from BMW Brilliance,and the debt ratio remains high. In 2019,Brilliance Auto's net profit was RMB 7.626 billion. If the financial data of BMW Brilliance were removed,it would be a loss of RMB 1.334 billion. In the first half of 2020,Brilliance Auto's net profit was RMB 4.045 billion,of which BMW Brilliance contributed RMB 4.338 billion. Two credit rating agencies in mainland China,Dagong International and Oriental Jincheng,began to put Brilliance bonds on their watch list in late August 2020. By late September,Brilliance's credit rating began to be downgraded. By late October,Brilliance's credit rating had been reduced from AAA to A+.[49][50]
In November 2020,Brilliance Auto's parent went into bankruptcy administration,[51] and announced the default of corporate bonds worth more than CNY6.5billion.[52] The bankruptcy administration is not affecting subsidiaries Brilliance Auto,Xinchen China Power,Shenhua Holdings,Shenyang Jinbei Automotive,or any of the joint ventures operated by the organization.[52]
On January 12,2021,the Shanghai Stock Exchange issued a disciplinary decision to publicly condemn Brilliance Automotive Group Holding Co.,Ltd. and its chairman and person in charge of information disclosure affairs.[53]
On December 30,2021,Brilliance Renault Jinbei Automobile Co.,Ltd. filed a new bankruptcy review case,and the handling court was the Shenyang Intermediate People’s Court of Liaoning Province.[54]
In June 2023,Brilliance Group stated that it had identified Shenyang Automobile Co.,Ltd. as a potential investor in the reorganization. Shenyang Automobile is a wholly-owned subsidiary of Shenyang Cairui Investment Co.,Ltd. Caisheng Investment,a subsidiary of Shenyang Cairui Shengjing Financial Holdings,and Shenyang Metro Operation,a subsidiary of Shenyang Metro,each hold 50% of the shares. The actual controller is Shenyang State-owned Assets Supervision and Administration Commission. After the relevant procedures for reorganization are passed,the actual controller of Brilliance Auto will be changed from the Liaoning Provincial State-owned Assets Supervision and Administration Commission to the Shenyang Municipal State-owned Assets Supervision and Administration Commission.[55]
On September 15,2023,FAW Car Vice President Liu Xuemin and former Vice President Liu Tongfu were suspected of serious violations of discipline and law and were both subject to disciplinary review and supervision investigation by the Liaoning Provincial Commission for Discipline Inspection and Supervision.[56]
Products
Brilliance Auto logo until 2002
Brilliance Auto Group and its subsidiaries sell passenger cars under the Brilliance marque.
Brilliance products (produced under Brilliance Motor)
Brilliance Xinri New Energy Automotive Co., Ltd was founded in October 2018, and the first stage plant was completed and put into operation in December 2020.[58]
In 2003, BMW and Brilliance agreed to make select products of this German luxury carmaker in China.[7] As of 2010, the joint venture made the BMW 3 Series and BMW 5 Series and had plans to introduce the BMW X1 by 2012.[59] As of 2011, locally produced engines were slated to appear in some offerings soon, and the company had plans to bring up total production capacity to 300,000 by 2013.[60]
These vehicles may differ slightly from those sold in other markets under the same names. As of mid-2010 almost 60% of the components used to manufacture the China-built BMWs were imported to China.[59]
Brilliance Shineray is a joint venture between Brilliance Auto Group and Shineray Motorcycle Company (Shineray Group), one of China's largest[citation needed] motorcycle producers. Shineray Group bought the Italian motorcycle brand, SWM (motorcycles), and started an automotive brand with the SWM nameplate. SWM now makes a range of crossovers and compact MPVs.[citation needed]
Formerly a wholly-owned subsidiary (Shenyang Brilliance Jinbei Automotive) which sold licensed Toyota and General Motors designs, Jinbei was re-formed with Renault in 2017 with plans to launch light commercial vehicles and SUVs with Renault technology, under the Jinbei and Renault marques.
BMW-branded autos are made at a production base in the Northeastern Chinese city of Shenyang completed in 2004, and ongoing construction saw this base increase its production capacity to 200,000 units/year by 2012.[61]
A total of 188,143 Brilliance marque vehicles were sold in China in 2013, making it the 25th largest-selling car brand in the country in that year (and the 10th largest-selling Chinese brand).[62]
European exports
In 2007, Brilliance's BS6 sedan performed poorly in a crash test conducted by Germany's ADAC, receiving only one out of five possible stars in the Euro NCAP rating.[63] Brilliance then redesigned the car, changing at least sixty components, and it saw a three-star performance in a crash test performed by Spain's Idiada.[64] However, the price also rose considerably,[65] and the importer (HSO Motors) went bankrupt in November 2009.[66] Brilliance then tried to go it alone, but with high pricing and considerable market reluctance after the well-publicized crash test failures, exports to Europe were ended in April 2010 with no immediate plans for resumption.[67]
In 2015, Brilliance announced it had started joint production with SAIPA of Iran, to produce the H300 and H200 models, under the local brand name of Saipa.[68]
Related Research Articles
Zhejiang Geely Holding Group Co., Ltd. (ZGH), commonly known as Geely Holding, is a Chinese multinational conglomerate headquartered in Hangzhou, Zhejiang. The company is privately owned by Chinese entrepreneur Li Shufu, and mainly engaged in the automotive industry.
Dongfeng Automobile Co., Ltd. is a Chinese automobile company based in Xiangyang, Hubei. It is a subsidiary of Dongfeng Motor Co., Ltd. (DFL) which is a joint venture of Dongfeng Motor Group (DFG) and Nissan. DFG is majority owned by Dongfeng Motor Corporation, a Chinese state-owned enterprise.
Changan Automobile Co., Ltd.(CCAG) is a Chinese state-owned automobile manufacturer headquartered in Jiangbei, Chongqing. Changan Automobile traces its origins back to 1862 when Li Hongzhang set up a military supply factory, the Shanghai Foreign Gun Bureau. It was not until 1959 when the factory was repurposed to manufacture Changjiang Type 46 jeep that it became an automobile manufacturer.
Jinbei is a Chinese automobile brand owned by Renault Brilliance Jinbei Automotive Co., Ltd., a joint venture between Brilliance Auto (51%) and Renault (49%) established in December 2017 and based in Shenyang, Liaoning, China. Until 2017, the marque was owned by Shenyang Brilliance Jinbei Automotive, a Brilliance subsidiary also based in Shenyang.
BMW Brilliance is an automobile manufacturing company headquartered in Shenyang, China, and a joint venture between BMW and Brilliance Auto. Its principal activity is the production, distribution, and sale of BMW passenger cars in mainland China.
The SWM brand was founded in Milan, Italy in 1971. In 2014, SWM Automobile was acquired by Xinyuan Holdings Co., Ltd. in Chongqing, China. On July 27, 2016, the SWM brand was officially launched in Beijing, China. In July 2016, the SWM brand was launched in Beijing and officially entered the passenger car market. SWM Automobile has a design center in Milan, Italy, and a manufacturing base in Chongqing, China. From 2016 to 2022, SWM Automobile has launched a number of SUV models. With the rise of new energy technologies, SWM Automobile has begun to transform into new energy vehicles, including hybrid and pure electric models.
The Jinbei S30 or Jinbei Zhishang S30 is a subcompact crossover SUV manufactured by Jinbei in China.
The Jinbei F50 is a compact MPV produced by Jinbei.
Jiangling Motors Corporation Group Co., Ltd. (JMCG) is a Chinese state-owned holding mostly operating in the automotive industry. It was established in 1947 and is headquartered in Nanchang, Jiangxi.
The Jinbei 750 is a compact MPV produced by Jinbei from 2015. The model was also rebadged as the SWM X2 from 2019.
The Jinbei Haixing X30 is a 8-seater minivan produced by Chinese car manufacturer Brilliance Auto under the Jinbei brand.
The Jinbei T20 was originally launched as the Jinbei Haixing T20, the pickup variant of the Jinbei Haixing A7 microvan produced by Chinese car manufacturer Brilliance Auto under the Jinbei brand. A long wheelbase version called the Jinbei Haixing A9 was also available. The Jinbei Haixing T20 was based on the same platform and shares the same cab design.
The SWM G01 is a compact crossover SUV that is manufactured by the Chinese manufacturer SWM (automobiles) of Brilliance Shineray. The SWM G01 debuted in April 2018 in Italy, and was launched on the 2018 Beijing Auto Show in China.
Shineray Group is a Chinese conglomerate. The group is the owner of the Italian motorcycle brand SWM.
The SWM X3 is a 7-seater compact crossover that is manufactured by the Chinese manufacturer SWM (automobiles) of Brilliance Shineray. The SWM X3 was launched on the 2017 Shanghai Auto Show in China.
The Jinbei Haise X30L (海狮X30L) is a 7-seater van produced by Chinese car manufacturer Brilliance Auto under the Jinbei marque.
The SRM Jinhaishi (金海狮) is a midsize MPV produced by Chinese car manufacturer Shineray Group under the SRM marque.
The SRM Jinhaishi M is a mid-size MPV produced by Chinese car manufacturer Shineray Group under the SRM marque. It is positioned under the slightly larger SRM Jinhaishi.
There are currently about 150 active brands in the Chinese automobile market. Among them are 97 Chinese domestic brands and 43 joint venture (JV) brands. Before 2010, the traditional "Big Four" refers to the four major state-owned car manufacturers, SAIC, FAW, Dongfeng and Changan. Other Chinese car manufacturers, both from public and private sectors, like Geely, BAIC, BYD, Chery, GAC, Great Wall, JAC and Seres emerged as the major players with the expansion of Chinese automotive industry.
References
↑ 2019 年年度报告[2019 Annual Report](PDF) (Report) (in Chinese (China)). Shenhua Holdings. April 30, 2020. Retrieved November 21, 2020– via Shanghai Stock Exchange website.
↑ "Management's Discussion & Analysis"(PDF). 2019 Annual Report (Report). Brilliance China Automotive Holding. April 27, 2020. p.35. Retrieved November 21, 2020– via hkexnews.hk.
1 2 "Report of Directors"(PDF). 2019 Annual Report (Report). Brilliance China Automotive Holding. April 27, 2020. p.22. Retrieved November 21, 2020– via hkexnews.hk.
↑ 2019年度报告[2019 Annual Report] (PDF) (in Chinese (China)). Huachen Automotive Group Holdings. 2020. Retrieved November 21, 2020– via Shanghai Clearing House.[permanent dead link]
↑ "2012年12月分车型前十家生产企业销量排名". China Association of Automobile Manufacturers (CAAM). January 14, 2013. Archived from the original on January 15, 2013. Retrieved January 15, 2013. Please note that in order to reach the 944K figure you must total the output of Brilliance (华晨) as well as Jinbei (金杯)
↑ 2019 年年度报告[2019 Annual Report](PDF) (Report) (in Chinese (China)). Shenyang Jinbei Automotive. April 30, 2020. p.45. Retrieved November 21, 2020– via Shanghai Stock Exchange website.
↑ 华晨金杯汽车有限公司背景资料. auto.sina.com.cn (in Chinese (China)). April 14, 2003. Retrieved November 22, 2020.
↑ 1995年年度报告摘要[Extract of 1995 Annual Report] (Report) (in Chinese (China)). Shenyang Jinbei Automotive. April 30, 1996. Retrieved November 21, 2020– via jrj.com.cn.
↑ 2000年年度报告(PDF) (Report) (in Chinese (China)). Shenyang Jinbei Automotive. 2001. Retrieved November 21, 2020– via Shanghai Stock Exchange website.
1 2 2001年年度报告(PDF) (Report) (in Chinese (China)). Shenyang Jinbei Automotive. 2002. Retrieved November 21, 2020– via Shanghai Stock Exchange website.
↑ 2018 年年度报告[2018 Annual Report](PDF) (Report) (in Chinese (China)). Shenyang Jinbei Automotive. March 30, 2019. p.9. Retrieved November 21, 2020– via Shanghai Stock Exchange website.
↑ "2011年1-11月前十家汽车生产企业销量排名". China Association of Automobile Manufacturers (CAAM). December 16, 2011. Archived from the original on January 5, 2012. Retrieved January 7, 2012.
1 2 公司简介[Company Profile] (in Chinese (China)). Brilliance Shineray. Archived from the original on February 22, 2020. Retrieved November 21, 2020.
↑ 王海宣 (August 8, 2020). 斯威汽车的“神奇生存”：边缘品牌如何求生. eeo.com.cn (in Chinese (China)). Retrieved November 21, 2020.
↑ The Board of Directors (August 28, 2020). 关于与华晨鑫源重庆汽车有限公司重新签订《注册商标使用许可合同》公告(PDF) (Press release). Shenyang Jinbei Automotive. Retrieved November 22, 2020– via Shanghai Stock Exchange website.
↑ 公开发行2020年公司债券（面向合格投资者）（第一期）募集说明书摘要(PDF) (Press release) (in Chinese (China)). Huachen Automotive Group Holdings. January 10, 2020. Retrieved November 22, 2020– via Shanghai Stock Exchange website.
↑ 王媛媛 (August 29, 2020). 华晨集团陷入债务危机，顺带“坑”了主承销商天风证券？. 21jingji.com (in Chinese (China)). Retrieved November 22, 2020.
↑ 天风证券股份有限公司涉及重大诉讼的公告(PDF) (in Chinese (China)). TF Securities. August 26, 2020. Retrieved November 22, 2020– via Shanghai Stock Exchange website.
↑ "四方面违规 上交所对华晨集团及有关责任人予以公开谴责". 第一财经 (in Chinese (China)). January 12, 2021. Archived from the original on January 19, 2021. Retrieved January 12, 2021.
↑ "华晨雷诺金杯申请破产，企查查显示其被执行金额超900万"[Brilliance Renault Jinbei filed for bankruptcy, and Qichacha showed that the amount of money it was executed exceeded 9 million]. 第一财经. December 30, 2021. Archived from the original on January 4, 2022. Retrieved January 4, 2022.
↑ "华晨重整协议"敲定"！投资交易对价不超过164亿元，沈阳汽车拟获三家上市公司控制权"[Brilliance's restructuring agreement "finalized"! The investment transaction consideration does not exceed 16.4 billion yuan, and Shenyang Automobile plans to obtain control of three listed companies.]. 每日经济新闻. June 19, 2023. Archived from the original on June 22, 2023. Retrieved June 21, 2023.
↑ "华晨汽车集团副总裁刘学敏等2人接受审查调查"[Brilliance Automotive Group Vice President Liu Xuemin and two others are under investigation]. 第一财经. September 15, 2023. Retrieved September 17, 2023.
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.
CNY181130 million (2019)
CNY279 million (2019)
CNY4992 million (2019)
