Liaoning province is to take a controlling stake in Brilliance China Automotive Holdings, Reuters reported. Huachen Automotive Group Holdings, which is wholly owned by the Liaoning provincial government, is to pay US$18.5m to buy a 39.45 per cent stake in Brilliance China from the Chinese Financial Education Development Foundation. The announcement removed the uncertainty that has hung over the company since the shareholders removed the former chairman, Yang Rong, from the board for alleged involvement in economic crimes. Yang, who denies any wrong-doing, is believed to be in the US, which has no extradition treaty with China.
Brilliance, the number one van maker in China, is setting up a joint venture with German automaker BMW to produce BMW sedans for the Chinese market.