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SHANGHAI -- Brilliance China Automobile Holdings Ltd. has signed a memorandum of understanding to form a joint venture with an American car dealership group. The joint venture will target China's automotive aftermarket, including warranties, training, finance, used cars, and auto leasing, insurance and internet sales.
The venture also gives Brilliance access to the United States market.
"The capital expansion will fuel our business initiatives in China, while the joint venture's development will offer us new revenue and profit growth," Wu Xiaoan, chairman of Brilliance Auto, said in a press release.
The venture will also give Brilliance "new momentum to firmly establish ourselves as a key player in the automobile industry in China and beyond," he said. Rocket Capital, an investment firm in Houston, Texas, and U.S. dealer Red McCombs will invest in the venture by subscribing to Brilliance Auto shares.
Brilliance is listed on the stock exchange of Hong Kong.
McCombs Automotive of San Antonio, Texas, is ranked number 48 on the Automotive News Top 125 Dealership Groups list.
Brilliance, based in Shenyang, China, manufactures sedans, minibuses and automotive components. It also produces BMW 3- and 5-series sedans in a joint venture with the BMW Group. |
