It is therefore not surprising that the German car industry does not like to see the newcomer on their home turf and they start an underhand campaign to discredit the brand. The Zhonghua cars have a modern platform, look attractive and cost a lot less than local brands. Export to Europe, among other things, is high on the agenda and Brilliance brokers a deal in 2007 with a large German dealer organization, that will distribute the cars across the continent. While the trucks and vans provide the revenue, Brilliance tries to develop its Zhonghua brand in the first half of the 2000s. Bo Xilai ensures that the new BMW factory is erected almost next to the factory for Zhonghua models. In 2003 the two parties establish a joint venture between Jinbei Auto and BMW. Brilliance was already familiar with the Germans because of their earlier negotiations about Land Rover. But Brilliance had another trump up its sleeve: BMW. Needless to say, the joint venture with MG Rover never went ahead. It controls 41% of old truck factory (now renamed Shenyang Jinbei Vehicle Manufacturing) through Jinbei Auto (the rest is publicly traded) and 51% of the old van factory (now called Shenyang Brilliance Jinbei Automotive) with the remaining 49% in the hands of Jinbei Auto. ![]() Brilliance wholly owns Jinbei Auto and manages two car manufacturers. State holding company Huachen owns 42.3% of Brilliance and the rest is publicly traded (Huachen does have a majority of voting rights). The actual structure of the company is as follows. This completes Bo’s coupe d’état and places Brilliance firmly under state control. Instead Brilliance is listed in Hong Kong. ![]() ![]() The next step follows in 2007 when Brilliance is delisted from the American stock exchange. Not much later, Huachen also buys back Jinbei Auto from FAW through a very complex transaction, that transforms Jinbei Auto into a subsidiary of Brilliance, although there are all kinds of holdings in between. Zhonghua Junjie (Brilliance BS4) as sedan and stationwagon As a result, Huachen becomes the controlling shareholder of Brilliance. Huachen then buys all of the Brilliance shares of Yang’s Development Fund for a fraction of their nominal value. The first step is establishing Huachen Automotive Group Holdings, where Huachen is the Chinese translation of Brilliance. Under direction of Bo Xilai, Liaoning province re-instates its control over Brilliance and Jinbei. After the Yang’s removal, Brilliance’ state of chaos requires a thorough reorganization.
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