Electric Zhijia news, on November 13, the established automobile group Brilliance Automobile Group Holdings Co., Ltd. (hereinafter referred to as "Brilliance Automobile") was filed for bankruptcy and reorganization by Gezhi Automotive Technology Co., Ltd. Currently, the details of Brilliance's application for bankruptcy and reorganization No more information has been disclosed for the reasons and further progress. Some media called Brilliance Automotive Group and Gezhi Automotive for interviews, but no response has been received as of press time.
According to the knowledge of Electric Zhijia, Gezhi Technology is an automotive stamping die supplier with a registered address in Liaoyuan City, Jilin Province. It is mainly engaged in the design, research and development, manufacturing and sales of automotive stamping dies. It is a global automotive manufacturer Component manufacturers provide customized services for automotive stamping dies.
It is worth noting that before this application for bankruptcy and reorganization, Brilliance Auto had already attracted market attention due to high debt and debt default. On November 3, Bloomberg reported that the Liaoning Provincial Government was considering judicial reorganization of Brilliance Auto to solve the debt problem. According to the report, the Liaoning Provincial Government has communicated with the financial regulatory authorities on the reorganization of Brilliance Group, but there is no clear reorganization plan. Related matters are still under discussion, so there are still variables. At that time, the rumor was not officially confirmed. According to data from
, as of mid-2020, Brilliance Group has liabilities of 132.8 billion yuan, assets of 193.3 billion yuan, and an asset-liability ratio of 68.72%. As of October this year, Brilliance Auto has issued 34 bonds and 14 remaining bonds, with a total outstanding bond balance of 16.2 billion yuan. From the perspective of maturity distribution, Brilliance Auto’s maturity and resale pressures will be concentrated in 2021 and 2022. The maturity and resale bonds will be 6.5 billion yuan and 9.2 billion yuan respectively, and the number of bonds involved will be 4 and 8 respectively. Electric Zhijia learned that in September of this year, there were rumors that the Liaoning Provincial Transportation Construction Investment Group would lead the privatization plan of Brilliance China. (100 billion debts are overwhelming, Brilliance Automobile urgently refutes the rumors) Although Brilliance Group refutes the rumors that "Liaoning Trading is considering leading the privatization of Brilliance China", the huge crisis it faces is beyond doubt. The financial report shows that the net profit attributable to shareholders of Brilliance China in 2019 was 6.762 billion yuan, of which BMW Brilliance contributed 7.626 billion yuan in net profit, with sales of 545,900 vehicles, an increase of 22.1% and 17.1% year-on-year respectively. In other words, for the entire year of 2019, Brilliance China has achieved profit growth by relying on BMW Brilliance when all other businesses are losing money.
But with the coming of 2022, Brilliance's equity in BMW Brilliance will be reduced from the current 50% to 25%, and BMW Brilliance’s hematopoietic machine will also be significantly reduced to Brilliance’s hematopoietic function. Although about 35 billion yuan can be obtained from the equity sale, how long can the money be maintained? In fact, there is not much time left for Brilliance.
In August of this year, some media revealed that, except for middle-level and above leaders, the rest of Brilliance China’s employees are about to take a long vacation, or it will last until the end of the year (the production system may have other standards). For Brilliance China, this long holiday notice is not particularly surprising, because Brilliance China has started a system of shifting to work since July, and employees who take turns at home are only paid according to the Shenyang minimum wage standard. And this time Brilliance China expands the holiday scope again, and most of Brilliance China employees will have to accept the Shenyang minimum wage standard of 1810 yuan. However, the monthly income of 1810 yuan can hardly sustain the expenses of an employee or even a family. As "leaders go to work, employees take holidays", employees can't get wages, causing dissatisfaction among employees.
In fact, it is a pity that Brilliance China has reached this point, but it is also expected. Regardless of last year’s dismal sales, according to reports, only the V3 and V7 models are currently on sale in Brilliance China’s 4S stores. The Zhonghua brand sold only 3,186 vehicles in the first half of this year, and the combined average monthly sales volume was 500. Or so, it can be said that the last straw is gone. This bleak number really makes it difficult for Brilliance China to sustain it. The Brilliance China brand has long been on the verge of delisting.
In addition to Brilliance China's brand in crisis, other Brilliance brands are also hardly optimistic. Take Brilliance Jinbei as an example. Jinbei Automobile previously listed and transferred 95% of its shares in Tieling Brilliance Pixel Products, and at the same time transferred 100% of its shares in Shenyang Jinbei Housing Development Co., Ltd., a real estate development company, to Shenyang Automobile Industry.
BrillianceLast year ushered in a major change in personnel. Chairman Qi Yumin, who had been in office for nearly 13 years, suddenly retired early, and Yan Bingzhe, former deputy mayor of Shenyang, took over. I thought that the new chairman Yan Bingzhe could bring new changes quickly, because Brilliance at that time needed new changes to stimulate the market, but after more than a year, Chairman Yan has not taken any action to attract the attention of the industry. Instead, it developed into the disadvantaged situation of Chinese brands taking long holidays and Brilliance Renault layoffs.
At present, Brilliance Auto does not seem to have much motivation to continue to develop and expand its own brands. For the current consumers, Brilliance Auto is only left with the label "BMW Brilliance". Over-reliance on BMW Brilliance has led to the lack of motivation for the development of its own brands. This not only gradually marginalizes the Brilliance China brand, but also plunges itself into continuous losses. status. In the future, how to "survive" Brilliance Auto's own brand in the fierce market and how to "survive" in the hearts of consumers is an urgent problem for Brilliance Auto to solve.
This article comes from the author of Autohome and does not represent the viewpoint of Autohome.
