In fact, many times when it comes to Brilliance Auto, everyone will think of Brilliance BMW, which will more or less bring an advertising effect to Brilliance Auto. But just a few days ago, Brilliance Automobile announced bankruptcy and reorganization, the reason turned out to be unable to repay the debt of 1 billion. One billion is indeed a lot for ordinary companies, but for a company like Brilliance, even one billion is not available, indicating that there are really business difficulties.
This really has something to do with BMW. BMW does sell well in China, but Brilliance Auto is not so good. In the financial report released in 2019, if the profit of BMW Brilliance is removed, the entire company is still at a loss. Brilliance always thinks that it's good to rely on BMW to eat, and now even BMW can't carry it, so it can only go bankrupt and reorganize.
At first, BMW would choose Brilliance Auto as a joint venture, which is really surprising. However, in the subsequent operation process, it turned out that Brilliance gave BMW the full power to operate BMW Brilliance. Although there is still the word Brilliance, it is actually BMW itself. BMW is not like other family cars because it is more expensive and it is difficult to gain a foothold in the market when it first entered China. But with Brilliance's resources, BMW has successfully passed the most difficult years in China.
Of course, Brilliance's ultimate goal is definitely to build cars, but as BMW's sales are getting better and better, profits are getting higher and higher. Brilliance can divide a lot of profits every year, year after year, in such an environment, gradually lost the idea of building a car. However, other domestic car companies are increasing their R&D efforts, and they have achieved initial results, and then spent a lot of R&D funds, but consumers did not like it, which also led to the huge debt of Brilliance.
Just in 2018, the rules of the joint venture changed and BMW bought a 25% stake in BMW Brilliance, which made Brilliance completely lose its right to speak. With the rise of domestically-produced cars, competition in the auto market has become increasingly fierce. Only by possessing the core technology of a car can one win in this race.
Brilliance Auto is just a microcosm of the development of domestically-made cars, but Brilliance’s life is so good that it forgets its own job. After the next joint venture car company reform, maybe it will not be called BMW Brilliance. However, this also brings a reminder to the domestic car companies that they need to put a little bit of research and development on them. When you have something, other people's things will only look like this.
This article comes from the author of Autohome and does not represent the viewpoint of Autohome.
