Renault once again lost to China The Golden Cup may return to life

On January 12, Brilliance China announced on the Hong Kong Stock Exchange that the court accepted the reorganization application of its subsidiary Renault Brilliance Jinbei Automobile Co., Ltd., marking the official entry of the Sino-French joint venture car company into bankruptcy reorganization procedures. Renault and Brilliance, after more than four years of cooperation, finally ended in a "breakup". Renault once again "lost" the Chinese market.

Why has Renault repeatedly lost in the Chinese market, and where will the Golden Cup without Renault go?

"Marriage" Renault

The two sides want to explore the commercial vehicle market

For those who know Renault Brilliance, the ending is not surprising. Since the beginning of last year, Renault Brilliance has been reported on large-scale layoffs and suspension of wages. On December 22 last year, CBN reported that Sgeumai Jincia, CEO of Renault Brilliance Gold Cup Company, who was on the cusp of the storm, broke off his shell and left China, and the news said that Schgemer would go to the Uk on January 1, 2022. At first, the person who compared jinbei to "sleeping beauty" and said that he wanted to be the "prince who woke up sleeping beauty" was still gone.

Like all joint ventures, the story begins with a good start. At the end of 2017, brilliance gold cup met Renault, at that time Brilliance, really needed a "prince" to take it out of the predicament. For Brilliance, it is more hoped that through cooperation with Renault, the Golden Cup will keep up with the trend of European wide-body light passengers and find new development opportunities.

Renault promises to introduce light passenger products and technical resources after the cooperation, and jointly explore the new commercial vehicle market. After the two sides reached an agreement, there was not much hesitation and a new joint venture was quickly established. According to the articles of association, the French Renault Group will be mainly responsible for the operation and management of the company.

For the future, the two sides have also established development goals, Renault Brilliance Jinbei plans to produce and sell light commercial vehicles under the three brands of Jinbei, Renault and Huasong, and achieve annual sales of 150,000 vehicles by 2022, involving MPVs, medium-sized vans and trucks, and large vans and trucks. And strive to achieve an estimated market share of 20% after 2025, rushing into China's light commercial vehicle market TOP3.

Renault has been slow to deliver on its promises

The "prince" left early

But an ideal is an ideal after all, and no commitment is convincing without action. After the joint venture, Renault Brilliance did not prosper, and the sales volume declined year after year after the establishment of the joint venture. Moreover, at the beginning of the establishment of the company, Renault promised to introduce ace light bus Master, Traffic and other models to the Chinese market, and planned to release them at the 2018 Guangzhou Auto Show, but after the joint venture, Renault delayed in fulfilling its commitments, and delayed in the introduction of models and technical commitments.

So that at the 2018 Guangzhou Auto Show, Renault Brilliance only released two Chinese special cars, and the two ace models of Renault Brilliance Guanjing and electric vehicle Lingkun EV were always in an "absent" state. Until November last year, Renault Brilliance, which has not had a new car launch, released the redesigned Jinbei Haishi King, and in the Renault Brilliance product series, it has always relied on the Jinbei brand Haishi and Grace to support the market.

Not only that, but in the internal management of Brilliance, it is also in a state of chaos. Although Renault's foreign management team and technical experts enjoy high salaries, they have been inactive in product research and development, sales, procurement, etc., resulting in frequent problems, repeated product development and promotion, wasting a lot of research and development expenses and time, and thus missing the opportunity for market development.

Seeing that Renault Brilliance has been in a continuous loss dilemma that cannot be reversed, Renault did not strive to seek a turnaround, but was ready to leave the market early, since the end of May last year, many projects of the joint venture company have been stopped one after another, and French experts have withdrawn. Until December 30, Renault Brilliance submitted a reorganization application to the court, the cooperation was a complete failure, and finally Renault left in a disgraceful way in the Chinese market.

After the reorganization

The Golden Cup may "dance" again for the new students

A highly anticipated "marriage" ended in this way, and Brilliance and Renault will face the development path after that. Whether it is an enterprise or an individual, every experience and every setback contains new opportunities and futures, and the rebirth of the cocoon is the unchangeable creed of the strong.

In today's light passenger market, the urban logistics demand is strong, providing more development space for light passenger brands. From January to November 2021, the cumulative sales volume of the light passenger market reached 372,400 vehicles, which was much better than the overall performance in 2020, providing more development opportunities for major automobile brands.

Over the years, Jinbei brand light passenger products have always had a high reputation and are well recognized by the market. At the same time, Brilliance Jinbei has rich experience and super practical ability in technology, quality control and production. These are the strength and strength of the Golden Cup to re-set sail.

Not only that, Brilliance Jinbei also continues to innovate in business models, deeply cooperates with platforms such as Fast Dog Taxi, opens up the ecological chain of products, dealers and users, and rapidly transforms and seeks more development opportunities in the new consumption era.

Industry insiders who understand the inside story revealed that at present, a number of investors have extended an "olive branch" and want to further cooperate with Renault Brilliance, which also shows the industry's recognition of the existing asset value of Renault Brilliance. With the blessing of Jinbei brand influence, through the introduction of new partners and new products through restructuring, jinbei has the possibility of reviving its vitality. ，

Ghost Bucket Truck Perspective: Brilliance's collaboration with Renault comes to an end. Renault, who has quarreled with Dongfeng and Brilliance, will walk on thin ice in the Chinese market next. In fact, for today's Chinese car market, what is needed is not only an aura, but also sincerity and strength, and only real good products can impress Chinese consumers. The Golden Cup may be revived from this failed cooperation and meet new cooperation opportunities. The next stop is a "journey" worth looking forward to.

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