RENAULT is in advanced discussions to end its joint venture to build vans with China’s State-backed Brilliance, a source close to the matter said, as the French firm overhauls its struggling Chinese operations.

The tie-up dates back to 2017, when Renault and Brilliance China Automotive Holdings Ltd. set up manufacturing operations in Shenyang, the provincial capital of Liaoning, and set out to make a push into electric commercial vans in particular.

The Chinese market has proved difficult for some foreign producers, however, with sales faltering right before the COVID-19 pandemic, which walloped the industry.

Renault last year ditched its main passenger car business in China following poor sales at its loss-making venture with Dongfeng Motor Group. But it is making a fresh attempt to crack the market with Geely Holding Group, announcing in August a hybrid vehicle joint venture.

Renault said in a statement its joint venture with Brilliance was still beset by challenges despite a transformation plan set out in June 2020, but declined to comment on its possible end.

“We do not comment on market speculation,” it said.

(SD-Agencies)