The History of Brilliance: From Jinbei Vans to BMW's Partner in China
Brilliance Auto is a state-owned carmaker from Shenyang in north-east China. It grew from a 1958 truck factory, became a leading minibus maker under the Jinbei name, launched its own Zhonghua cars in 2002 and has built BMWs with the German company since 2003. Its own car brands collapsed in 2020, while the BMW joint venture remains the profitable core.
Key takeaways
- Roots: Shenyang vehicle factory of 1958; Brilliance China Automotive Holdings was set up in Bermuda in June 1992 and listed in New York.
- Own cars: the Zhonghua saloon of 2002, styled by Giugiaro, with a chassis engineered by Porsche Engineering.
- Partner: BMW Brilliance Automotive, founded in 2003; BMW has held 75 % since 2022.
- Crisis: Brilliance Auto Group entered bankruptcy reorganisation in November 2020.
Brilliance key facts
| Fact | Value |
|---|---|
| Full name | Brilliance Auto Group (Huachen Automotive Group Holdings) |
| Headquarters | Shenyang, Liaoning province, China |
| Origins | Shenyang vehicle factory, 1958 |
| Listed company | Brilliance China Automotive Holdings, incorporated 9 June 1992 |
| Owner | Liaoning provincial government (state-owned; move to Shenyang city control planned in 2023) |
| Main brands | Zhonghua, Jinbei, Huasong |
| Key joint venture | BMW Brilliance Automotive (BMW 75 % since 2022) |
| Production capacity | 800,000 vehicles a year (2010) |
Brilliance timeline: 1958 to 2023
| Year | Event |
|---|---|
| 1958 | A truck factory is founded in Shenyang, the distant ancestor of Jinbei |
| 1991 | Yang Rong becomes chairman; the factory grows into a leading minibus maker |
| 1992 | The listed holding company is set up and floated on the New York Stock Exchange |
| 1999 | Most group assets move into the listed company, which also lists in Hong Kong |
| 2002 | The Zhonghua saloon goes on sale; Yang Rong leaves; the Huachen holding company is created |
| 2003 | BMW Brilliance joint venture is founded |
| 2007 | The BS6 fails a crash test in Germany; the group returns to profit with 130,000 cars |
| April 2010 | Exports to Europe end |
| 2014 | Huasong 7 MPV launched |
| December 2017 | Renault takes 49 % of the Jinbei passenger-vehicle business |
| 2018 | BMW agrees to raise its stake in the joint venture to 75 % |
| November 2020 | The parent group enters bankruptcy reorganisation |
| June 2023 | Shenyang Automobile is named as a possible restructuring investor |
Origins in Shenyang: trucks and minibuses
The story starts with a truck factory set up in Shenyang in 1958. For decades it was a typical state plant. That changed in 1991, when Yang Rong became chairman of the business. Under his management the company turned into one of China's leading minibus makers, building Jinbei vans that used Toyota technology.
Yang also brought the group to foreign investors. The holding company was registered in Bermuda that June, and its shares traded in New York under the code CBA. In 1999 most of the group's assets were moved into this listed company, which also began trading in Hong Kong. By 2001, Forbes counted Yang Rong as the third-richest businessman in China.
The Zhonghua saloon: an Italian-styled Chinese car
In 2002 the company launched its first own passenger car, the Zhonghua, a word that means "China". It was a large saloon of 4,880 mm with a 2,790 mm wheelbase. Giugiaro styled the body, and Porsche Engineering developed the chassis. Mitsubishi supplied the 2.0- and 2.4-litre engines, rated at about 90 and 96 kW (122 and 130 hp).
Zhonghua was presented as one of the first mass-produced Chinese cars with its own intellectual property. Later versions were split into two lines. Junjie was the cheaper model, sold in Europe as the BS4, while Zunchi was the better-equipped one, sold as the BS6. The range later grew to include the Kubao (BC3) coupé and the Brilliance V5 compact SUV.
Ownership change in 2002 and the Huachen holding
The same year brought a change at the top. In 2002 Yang Rong lost a dispute with the Liaoning provincial government over control of the company. His reported stake of about 700 million US dollars was taken, and he left China in July 2002 for the United States. The province then created Huachen Automotive Group Holdings to bring Brilliance and Jinbei back under one owner.
The first years after the change were hard. In 2004 Zhonghua sales fell by 60 % and Jinbei van sales by 20 %, and the company slipped into a loss. It recovered in 2007, building about 130,000 cars and returning to profit. In 2009 the Zhonghua business was moved to Huachen, out of the listed company.
BMW Brilliance: the joint venture that saved the group
In 2003 the Shenyang group and BMW signed a deal to build BMW cars in China. The joint venture, BMW Brilliance Automotive, started with the BMW 3 Series and 5 Series. The old 1cars text recorded 15,300 BMW sales by 2006 and the start of BMW X1 production in 2012.
Over time the joint venture became the most valuable part of the group. Today the venture operates two vehicle factories and an engine factory in Shenyang. In October 2018 BMW agreed to buy another 25 %, and the deal took effect in 2022, when China lifted its limit on foreign ownership in carmakers. Since then BMW has held 75 %, while Brilliance holds the rest.
The figures for 2019 show how much the group depended on BMW. The listed company reported a net profit of 7.626 billion yuan, about €1.0 billion at the time. Without BMW Brilliance, it would have made a loss of 1.334 billion yuan. By our calculation, the BMW joint venture therefore brought in nearly 9 billion yuan in that single year.
Europe: crash tests and an end to exports
In 2007 the company tried to sell its saloons in Western Europe through the German importer HSO Motors. The prices were attractive: period reports put a fully equipped car at about €19,000 to €23,000. That was well below a Ford Mondeo, Opel Vectra or VW Passat.
Safety tests ended the plan. In 2007 the German motoring club ADAC crashed the BS6 to the Euro NCAP protocol, and the car received one star out of five. Brilliance redesigned the car, changing about 60 components according to the old 1cars text, and a later test by Spain's Idiada gave it three stars. The damage to its image remained, however.
HSO Motors went bankrupt in November 2009. Exports to Europe stopped in April 2010 and never resumed them. Only a small number of BS4 and BS6 cars reached European owners.
Joint ventures, Huasong and Renault
The group tried several partnerships to grow beyond its own brands:
- Shineray: a joint venture in Chongqing, sold in 2018.
- Xinchen China Power: the engine business, spun off in 2013.
- Huasong: a premium MPV brand launched in 2014 with the Huasong 7, which used BMW technology.
- SAIPA: assembly with the Iranian carmaker began in 2015.
- Renault: in December 2017 Renault bought 49 % of the Jinbei passenger-vehicle business for a symbolic 1 yuan. The new company, Renault Brilliance Jinbei, built vans and minibuses.
- Xinri: a small electric-car venture formed in 2018.
None of these turned the own brands around. Zhonghua sold about 150,000 cars in 2016, but the market moved fast towards SUVs and new Chinese brands.
Brilliance in numbers
| Year | Figure |
|---|---|
| 2007 | About 130,000 Zhonghua and Jinbei vehicles |
| 2010 | Production capacity of 800,000 vehicles a year |
| 2012 | Almost 650,000 vehicles, about 70 % of them saloons |
| 2013 | 188,143 own-brand vehicles sold in China |
| 2016 | About 150,000 Zhonghua cars |
| 2020 (first half) | Just over 3,000 Zhonghua cars |
By our calculation, the 188,143 own-brand sales of 2013 equal about 515 vehicles every day of the year.
By our calculation, annualised Zhonghua sales in 2020 were about 96 % less than in 2016. For context with other Chinese makers, read the histories of BYD and Changan.
Bankruptcy and restructuring since 2020
The collapse came quickly. In 2020 Zhonghua sold just over 3,000 cars in the first half, and its operations stopped in August. In October the group missed a bond repayment, and in November 2020 a court in Liaoning placed Brilliance Auto Group in bankruptcy reorganisation. Its total debt was reported at almost 15 billion US dollars, roughly €12.5 billion at the time.
The Shanghai Stock Exchange publicly criticised the company and its chairman in January 2021, and former chairman Qi Yumin was investigated for suspected fraud. Renault Brilliance Jinbei faced its own bankruptcy review from December 2021. In June 2023 Shenyang Automobile was named as a possible investor for the restructuring. The BMW joint venture was not part of the bankruptcy and kept producing cars.
The Brilliance line-up over the years
| Model | Segment | Body | Years |
|---|---|---|---|
| Jinbei minibuses, Granse | Minibus / MPV | Van | 1990s onwards |
| Zhonghua (Zunchi, BS6) | Mid-size | Saloon | 2002 onwards |
| Junjie (BS4) | Mid-size, lower price | Saloon | 2000s |
| Kubao (BC3) | Coupé | Coupé | 2000s |
| V5 | Compact SUV | SUV | 2011 onwards |
| Huasong 7 | Premium MPV | MPV | 2014–2020 |
Brilliance today: should you buy one?
Today the name matters mostly through BMW Brilliance, the base of BMW production in China. Zhonghua and Huasong cars are no longer a real force in the Chinese market. If you meet a used Brilliance in Europe, it will be a rare BS4 or BS6 from 2007–2010, and parts support should be checked before buying. For a modern saloon or SUV in the same size class, the 1cars car finder filters current models by body, power and fuel. To see Chinese models side by side, use the 1cars comparison tool, or browse all Chinese cars in the 1cars catalogue.
FAQ
Who owns Brilliance today?
Brilliance Auto Group is owned by the Liaoning provincial government and has been in bankruptcy reorganisation since November 2020. Its listed arm, Brilliance China Automotive Holdings, still holds 25 % of BMW Brilliance, while BMW holds 75 %.
When was Brilliance founded?
The group traces its roots to a Shenyang truck factory founded in 1958. Its listed arm, Brilliance China Automotive Holdings, dates from 9 June 1992, when chairman Yang Rong registered it in Bermuda.
Where are Brilliance cars made?
Zhonghua cars and Jinbei vans come from Shenyang, in Liaoning province. The BMW joint venture also builds cars and engines in the same city for BMW models sold in China.
Why did Brilliance stop selling cars in Europe?
Poor crash-test results did the most damage. The BS6 received one star in an ADAC test in 2007, and the importer went bankrupt in 2009. Exports to Europe ended in April 2010.
Who designed the Brilliance Zhonghua?
Giugiaro styled the Zhonghua saloon, and Porsche Engineering developed its chassis. Mitsubishi supplied the petrol engines and gearboxes for the car, which went on sale in China in 2002.
