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.
1990s In the 1990s under Yang Rong, Brilliance rose to become China’s largest automaker. On 9 June 1992, a subsidiary,
Brilliance China Automotive Holding Limited was incorporated in
Bermuda. 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. (), as NYSE:CBA. The company intended to delist from NYSE in 2007 and completed in 2009. 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. , Huachen Automotive Group (Brilliance Auto Group) owned 42.32% shares of the listed company as the largest and controlling shareholder. The Group has another listed associate company that is listing in the
Shanghai Stock Exchange: Shenyang Jinbei Automotive Company Limited. , the Brilliance Auto Group, via an intermediate company Shenyang Automobile Industry Asset Management Company Limited (), owned 24.38% of the shares of that company as the largest and controlling shareholder. It planned to inject the stake into the major listed company of the group, Brilliance Auto, in 2003. 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 (now
Renault Brilliance Jinbei). Shenyang Jinbei Automotive has been listed on the stock exchange since 1992. Shenyang Jinbei Automotive and Brilliance Auto Group were separate conglomerates, and a controlling stake in Shenyang Jinbei Automotive was acquired by
FAW Group in 1995. Shenyang Automobile Industry AMC agreed to acquire a 29.91% stake from FAW Group in 2000.
2000s In 2001, Shenhua Holdings agreed to acquire the shares of Shenyang Jinbei Automotive that were held by
Shenyang Automobile Industry AMC, In 2001,
Forbes reported that Chairman Yang Rong was China's third-richest businessman. Yang made a failed bid to locate a Brilliance factory in
Ningbo, China. 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. In 2002, Bo seized Yang's stake of $700 million in Brilliance. 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. From 2009 to 2011, the group was the eighth-largest automaker in China.
2010s to present In 2012, Brilliance Auto Group formed a joint venture
Brilliance Shineray () in
Chongqing with
Shineray Group to produce
SWM and
Jinbei The latter is not part of the Brilliance Auto Group, but the Group provides a guarantee for some debt of that company. In 2013, Brilliance Auto formed a spin-off,
Xinchen China Power Holdings Limited. In 2017, Brilliance Auto also formed another joint venture
Renault Brilliance Jinbei with
Renault. Brilliance Auto acquired the remaining 39.1% stake of Brilliance Jinbei from sister company Shenyang Jinbei Automotive, and then Brilliance Auto re-sold a 49% stake to Renault. In October 2018,
BMW Brilliance, a 50:50 joint venture between BMW and Brilliance, was taken over by BMW by the latter acquiring an additional 25% of the available shares. In recent years, Brilliance Group has suffered from long-term poor management, and its own brands have been in a state of loss. The majority of profits come from BMW Brilliance and the
debt ratio remains high. In 2019, Brilliance Auto's net profit was RMB 7.626 billion. If the profits of BMW Brilliance were subtracted, the figure 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+. In November 2020, Brilliance Auto's parent went into bankruptcy administration and announced the default of corporate bonds worth more than
CNY6.5
billion. The bankruptcy administration does not affect the subsidiaries Brilliance Auto,
Xinchen China Power,
Shenhua Holdings,
Shenyang Jinbei Automotive, or any of the joint ventures operated by the organization. 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. 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. 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. == Corporate leadership ==