On December 5th, in 2019, the global auto market entered a "downturn black hole", the domestic market has become a "hardest hit", and the domestic auto market will face a major reshuffle. Some time ago, it was frequently reported that four domestically-produced car companies, including Cheetah, Zotye, Huatai, and Lifan, would enter bankruptcy procedures at the end of the year. Ping An Bank issued an announcement requesting the investigation of four car companies and related industrial chains to control risks. Although the four car companies have urgently refuted rumors, it is difficult to eliminate public doubts and speculation.
The lively atmosphere created by the booming domestic auto market has gradually dissipated, and the atmosphere of confidence to revitalize the auto market has not yet arrived, and an unprecedented market collapse has occurred. Refactoring. Li Shufu, chairman of Geely Automobile, said that in the future, only 2-3 domestic auto companies can survive the fierce competition.
First Vice Chairman of the World Automobile Organization Dong Yang said that China’s auto market has the most auto brands in the world, and the survival of the fittest is inevitable. It may not be a good thing for the domestic market and is conducive to the formation of concentration. The leading companies and brands of China have laid the foundation for a new round of growth in the automotive industry. Cui Dongshu, secretary-general of the National Passenger Car Association, agreed with Dong Yang and pointed out that bankruptcy of car companies is unlikely. Most companies may be acquired or merged when they go bankrupt. Some disadvantaged car companies seize integration opportunities and join powerful companies. Large enterprise groups to achieve their own transformation.
