Dongfeng Yulong, a domestic dark horse car company ten years ago, is now in bankruptcy and reorganization, and no one is willing to take over. No car has been sold for two years. Some people commented that Dongfeng Yulon is the first traditional car company to fall under the new energy vehicle tide.
Some people also say that since its leader Yan Kaitai passed away in 2018, Dongfeng Yulong has begun to fall into a slump. So what is the real reason for Dongfeng Yulong’s decline?
Is Dongfeng Yulon's fall a death knell ringing in advance for traditional cars? This issue of the Shangjiang Tips will take you to learn about the rebirth and decline of Dongfeng Yulon.
Dongfeng Yulon
The past two years have been an unstable year for the automobile industry. On the one hand, new energy vehicles emerged in the market. BYD , Great Wall and other brands have seized the opportunity and are vigorously expanding.
On the other hand, there is the rapid decline of traditional car companies. From 2020 to now, several well-known car companies such as Zotye, Cheetah have announced bankruptcy and reorganization. The name Dongfeng Yulong has been on the bankruptcy and reorganization list for more than half a year.
You should know that shortly after Zotye went bankrupt, Jiangsu Shenzhen Businessmen was willing to take over it. On the other hand, Dongfeng Yulon has been rushing to attract investment since November last year, but three attempts ended in failure.
No investor is willing to take over this car company with a debt of more than 7 billion yuan. You should know that just ten years ago, Dongfeng Yulon was the fastest growing brand among domestic joint venture car companies.
What exactly caused Dongfeng Yulong's fall? We still have to talk about the past and present of the Yulong brand.
Yulong Auto was first born in Taiwan in 1953. At that time, Yulong Group still picked up the US military's military vehicle technology and changed it to civilians for sale. Yulon Auto has cooperated with automakers such as GM, Japan Nissan .
Yulong is one of the earliest civilian car companies in Taiwan, with good qualifications, hardware and reputation. In 2010, Yulon Auto and Dongfeng Motor reached a cooperation, and Dongfeng Yulon was officially established.
As for why Yulon Group chose the mainland this time, the reason has to start two years ago. Yulong came to the mainland without any warning. In 2008, the automobile market in the United States, Japan and other countries tended to decline.
The United States' own century-old Ford and General have closed dozens of factories, not to mention foreign car companies like Yulon. Faced with the weakness of the US and Japanese markets, Yulon's then chairman Yan Kaitai turned his attention to the mainland.
In 2010, he came to Hangzhou and reached a cooperation with Dongfeng Motor. After spending more than 10 billion yuan, a brand that holds the hopes of Yulong Group was born: Nazhijie .
From dark horse to sewer
In the first five years of the brand's initial development, Nazhijie performed well. In 2011, Nazhijie launched its first model, Nazhijie Big 7.
At that time, many domestic consumers were attracted by this avant-garde and novel car and the price was very affordable. In the first year of launching the product, Nazhijie's annual sales reached 31,000 units.
But as consumers bought the car home, Nazhijie's problem immediately emerged. There are still some jokes about Nazhijie in China today, such as oil tigers, poor operating feeling, poor transmission, etc.
Nazhijie was synonymous with the appearance of many car friends at that time. Its novel and beautiful shape and ample space are very frightening on the outside, but when you buy it and open it, it feels so terrible.
Of course, consumers who do not pursue performance are quite satisfied with the high appearance of Nazhijie. Nazhijie also improved the later models to target the transmission , which consumers often complain about.
In any case, Nazhijie has been in a smooth life in the first five years of its establishment, and its annual sales reached a peak of 60,000 vehicles in 2015. But after the peak, Nazhijie began his own cliff-jumping decline.
In 2016, Nazhijie's sales were almost halved, and he achieved only 40,000 vehicles that year, one-third less than his peak level in 2015. After the peak of
Dongfeng Yulong began to decline rapidly. By 2017, Nazhijie's annual sales were only more than 10,000 vehicles. In the past two years, Nazhijie has completely changed from a dark horse brand to a sewer car company.
By 2019, Nazhijie's annual sales were only more than 1,000 vehicles, and it was directly in a state of suspension.
Why did Nazhijie fail
Regarding why Nazhijie declined rapidly, some people say it was caused by the impact of new energy vehicles, while others say it was Nazhijie's poor performance that made him abandoned by consumers.
However, these two statements are still a bit one-sided. First of all, it is new energy. Nazhijie actually launched its own new energy concept car Neora in 2011. But the real arrival of my country's new energy vehicle wave is after 2018.
At that time, Nazhijie had only one breath left, saying that new energy defeated Nazhijie, this statement was not accurate. The statement about quality issues is also difficult to convince.
Although Nazhijie has many problems, most consumers who have purchased it mainly make jokes. The price of Nazhijie is still quite worthy of its performance.
A more convincing point of view is that Nazijie died of mediocrity. In the ten years since I came to the mainland, Nazhijie has basically not achieved anything in brand building.
Nazhijie is quite concise in all aspects, which has become its most fatal problem. A brand may not be excellent, but it must not be without characteristics.
The only thing that Nazhijie can leave a impression is actually the oil tiger, which can be said to be a complete failure in brand image. Dongfeng Yulong is now dragging more than 7 billion yuan in debt and seeking acquisitions everywhere, but after more than half a year, no one has paid attention to it.
Industry insiders commented on this: taking over the car company is for the brand, otherwise it would be equivalent to spending billions of dollars to buy a bunch of factories and equipment. Indeed, who would be willing to spend a high price of 7 billion for Nazhijie, a sign that no one cares about?
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