SHENYANG, Liaoning – Brilliance-Jinbei sold its Zhonghua-branded vehicle business to Brilliance Automotive Group Holdings Co., Ltd. on October 30 at a price of ¥494.5 million ($561 million), according to an announcement from Brilliance China.
Brilliance-Jinbei is a 51 percent subsidiary of Hong Kong-listed Brilliance China, which is majority owned by Brilliance Automotive Group Holdings.
Although Brilliance-Jinbei saw a 29 percent year-on-year growth by selling 80,103 Zhonghua sedans in the first nine months, the operation of Zhonghua sedan could lose ¥720 million by estimation for 2009 due to the high R&D cost and small sales number.
According to the announcement, the sales of Zhonghua vehicle business will help Brilliance China refocus its management and financial resources on its existing profitable businesses, such as the Jinbei-branded mini buses and its joint venture with BMW.
Currently, Brilliance China is working actively with its partner BMW to finalize details of the joint venture’s new expansion plan which includes capacity increases, new product introductions, exports and other potential means to increase the sales and market share of the joint venture. It is also working closely with Toyota to explore ways of deepening their cooperation in the mini bus segment in China to strengthen its Jinbei mini bus’ leading position.