Embattled parent of BMW’s China partner names new chairman
BEIJING, June 28 (Reuters) – Shen Tiedong has been named as chairman of Huachen Group, parent of BMW’s (BMWG.DE) China partner Brilliance Auto (1114.HK), according to a Brilliance Auto wechat post on Monday.
Huachen is standing on the brink of bankruptcy, defaulting on billions of yuan in debt obligations. Chinese regulators have launched an investigation into possible violations of disclosure laws by the company.
Brilliance makes vehicles with BMW in the northeastern Chinese city of Shenyang. It also has a joint venture with Renault SA(RENA.PA).
Yan Bingzhe, Huachen’s former chairman, will step down, the post said. It did not offer details of how Huachen plans to repay the debts.
Reporting by Yilei Sun and Tony Munroe; Editing by Toby Chopra
Our Standards: The Thomson Reuters Trust Principles.