Source: a traveler
Article: Wang Jingyi
Original title: the collapse of new car making forces: former employees and investors restore the “secret corner” of new car making
Looking back on the experience of the new forces of car making in the past three years, Li Zhen’s biggest feeling is: unwilling.
He used to be a manager of a certain department of Bojun automobile. He was inspired to join a start-up company and make a career. In 2017, he left his family and came to Nanjing from Shenyang in Northeast China. He planned to take his family back after gaining a firm foothold. Three years later, knowing that “things can’t be done and time is wasted”, he returned to his home in Shenyang in dismay after a few months in arrears.
“Can you imagine that I have worked for so many years without money? At my age, there are old people and young people, as well as housing loans. My monthly salary is always moonlight. At the end of last year, my father had an operation in his hometown. I didn’t go back to see it because I didn’t have any money. I had to save my travel expenses to pay the hospital expenses. ” A few years of time, empty, has become the man who has already passed the age of standing does not want to say more heavy.
Li Zhen felt that his experience in Bojun “can’t be said to be a failure, just very unwilling and very upset.” The Department has done a lot of things, and he has also taken out the skills of pressing the bottom of the box. However, from the company level, the car has not been produced, the factory has not been built, and there has been no actual progress – until Bojun automobile, which has been established for four years, announced its failure in building a car in June this year, and has not built a car that can be used on the road.
I watched him rise to the Zhu tower, watched him feast his guests, and saw his building collapse. This lyrics can’t be more appropriate to describe the new forces of car making in recent years.
Around 2015, more than 100 new forces of car making were established. Although their models were still only ppt on the screen, various capitals and media competed to report on them, and they were all holding high in various press conferences and exhibitions.
By 2020, the prosperity will turn into a complete decline. Except for a few, most of the new forces will not be able to build a car that can really go on the road, and some of them have produced almost no sales. After the cash flow breaks, they can only stop operation, leaving employees in many places of the country who are struggling to earn salaries, suppliers who appeal to the courts, idle factory land, and local governments who have no choice but to deal with the aftermath The feeling of Mao.
This is the story of a veteran in the automobile industry who has broken his halberd.
Huang Ximing, founder of Bojun automobile, has been in the automotive industry for more than 20 years. He spent the first half of his time in Detroit, and the latter half of his time back home to develop chassis for the main engine plant. In 2016, this technical school founded Bojun automobile with the help of capital. Four years later, it announced that the car production failed due to the lack of follow-up financing. However, it planned to build factories in Nanjing, Huai’an and Shanghai, and now it sounds like a cover for enclosure.
Lu Qun, the founder of Qiantu automobile, has a similar fate. At the beginning of his business, he was a technical man of science and technology, and he also had feelings. He wanted to build an electric super running car belonging to the Chinese people. However, the market reaction was flat. On the one hand, he could not make money from selling the car. On the other hand, external blood transfusion stopped. Five years later, due to arrears of wages, he became a Laolai who was restricted by the court for high consumption.
The founding team of byton automobile is from BMW and Infiniti. At the beginning of its establishment, some foreign media exclaimed that “BMW’s electric vehicle team has been poached by China”. Not only the team camp is luxurious, but the design of vehicle models is also very bright. However, the delivery time of mass production of vehicles has been delayed. June this year is the original delivery time, but the owner of 50000 orders has come to stop the operation of the company Interest, wages owed by employees and arrears from suppliers are also quite a lot.
Why is it so difficult to build a car that many entrepreneurs become cheaters and Laolai in just a few years? Recently, travelogue interviewed more than ten investors, practitioners and observers, trying to restore the course of the collapse of this new force in car building.
“Money is time”
Lack of money is the direct cause of the fall of the new forces. For startups, contrary to the concept of “time is money,” money is time.
It’s very important for new forces to please investors. Because the models are still on paper, it is impossible to make money by selling cars, and it is difficult for start-up companies that lack assets to mortgage to obtain bank loans. Equity financing has become the most feasible method.
“If you’re a few years away from selling a car, why spend millions of dollars on CES?” “We have investors,” says Jerry Lavine, President of North America at Berkshire motor. We’re not wasting our work just to make a show car. ”
“What is the new force of car making? It is to participate in automobile manufacturing in the mode of financing. ” Cao he, President of quanlian vehicle Investment Management (Beijing) Co., Ltd., said frankly to a traveler that what the new forces are engaged in is the capital game. Whoever goes public first will live first.
IPO is a goal set at the beginning of the new power – because investors need exit mechanisms and executives need returns. For example, the contract of bificom, a member of the founding team of bytecan, stated in his contract that “in the next few years, the new company will IPO in Hong Kong, and byton is obliged to provide bificom with 2.5% stock options unconditionally.”
But unexpectedly, investors are not willing to cast again. The game of beating drums and passing flowers will stop in 2019, and many new forces will fall before IPO.
At the beginning of 2019, the first direct store of byton automobile is ready to open. Although the model has not yet been mass produced, byton has rented hundreds of square meters of space in the busy section of Nanjing West Road in Shanghai to display models and interact with car owners. The monthly rent is about 1 million yuan. Chen Yu, a former employee, remembers that the store clothes were designed by the German marketing manager of byten from a third party. They were customized in Germany and imported from Germany, plus customs duties. “A dozen sets of clothes cost 600000 yuan, worth Lv.”. Even if he has left his job, Chen Yu is reluctant to lose this suit.
Due to the company’s delayed financing, byton’s Shanghai store began to default on rent by January 2020. “Now a lot of things in the store are still in it, including a concept car, because the concept car can’t move without wheels, and byton has no money to go to the trailer company.” Chen Yu told a traveler.
The rent of beiteng Shanghai store has been in arrears and there is no money to move away the concept car / photos provided by the interviewees
The break of capital chain is leading to the collapse of new forces of car making. Around 2020, Bojun automobile, Changjiang automobile, sailin automobile, Qiantu automobile, Tianji automobile and other companies were exposed to be in arrears with their employees’ wages, which made it difficult for the company to continue. However, most of the employees have not been properly resolved.
When the capital boom, new forces rise one after another; when the tide recedes, most new forces are destroyed. Around 2016, with the strong support of national policies, the new energy direction has become one of the most promising directions for investors. There is no lack of hot money in the market, and new car manufacturing enterprises are not worried about financing. Zhang Zetian once recalled the process of Liu qiangdong’s investment in Weilai automobile: “Li Bin came to our house for a meal. He spent 15 minutes talking about his ideas, and my husband spent 10 seconds saying yes!”
Why is financing difficult? An investor who participated in the investment of new car making forces told trip Yike: “in 2018 and before, the new forces of car making are relatively good at financing, and the ammunition in the accounts of those car companies in the head is also relatively sufficient. But now, first, there is a problem of the economic environment, and there is less hot money in the market; second, many new car making forces are not performing well in the market, which makes it difficult to realize financing; third, the valuation of many new automobile making forces has been very high, and the return on reinvestment will not be very high. ”
Some investors compare new investment forces to “gambling on horses”. At the starting line stage, because of the high odds ratio, investors will spread their bets, and it is easier for new forces to get financing. As the race enters the second half of the race, it is gradually clear that investors will bet on the leading horses, and naturally no one will continue to invest in the lower ranked ones.
There is no doubt that the Matthew effect of the strong is stronger and the weak is weaker. Even in the cold winter of financing, Weilai, Weima, Xiaopeng, ideality, etc. can still obtain large amount of financing. According to the Research Report of several securities companies, the head aggregation effect of investment in the field of new cars is obvious, which will squeeze the survival space of companies that enter the industry late The companies that failed were generally established around 2016, and the vehicle progress and financing rounds were relatively backward.
Another common feature of these “collapsed” companies is that most of the founders are from traditional car companies, while most of the founders of new forces in the head are from cross-border entrepreneurial backgrounds of the Internet.
Why can’t veterans of automobile enterprises make cars instead? Meng Wen, an industry personage who has had communication with senior executives of many new forces, commented that it takes time for executives of automobile companies to attract capital recognition. For example, the financing side of byton is still too simple. Large amount of financing comes from regional capital. For example, Nanjing government and FAW Group do not have a variety of domestic and foreign capital endorsements for the founders, which shows that their appeal in the industry is not strong. “In the reasons for the success of the new car, I will put the background of the founder first.”
The speed of wind direction change in the capital market is totally unexpected. In an interview with the media in the middle of 2019, Byron CEO Daley frankly said that startups need to spend too much energy to control costs. Cost control and car building have become equally important, and the company is unable to launch good products and quickly push them to the market.
“The automobile industry is very capital intensive. If round a financing 300 million yuan, round B will get 1 billion yuan, and round C will get 4 or 5 billion yuan, the financing scale must be larger and larger, but there is not so much money for you in the market.” Cao he told a traveler.
At present, no new force of car making has made profits, and even the leading enterprises are still suffering huge losses.
According to the financial report of Weilai automobile, the net loss of 2019 fiscal year reached 11.296 billion yuan, with a year-on-year increase of 17.2%. Based on the average selling price of Weilai es8 of 536000 yuan, Weilai has lost more than 20000 es8 vehicles a year. Recently, the prospectus released by ideal automobile also disclosed that in 2018 and 2019, the operating income of ideal automobile was RMB 0 and RMB 284 million, and the net loss was RMB 1.532 billion and RMB 2.438 billion respectively.
Burning money continues, the dilemma is hard to solve. According to the above investors involved in the investment of the new automobile making forces, it is basically no problem to hold on for more than two years from the books of the first few new automobile making forces. However, the R & D and production of new cars need to invest a lot of money, which is a great challenge.
Why is it so difficult to build a car
Among the more than 100 new forces of car making, the data from the China Travel Association show that only 8 enterprises with sales volume are Weilai, Xiaopeng, Weima, ideality, guozhijun, Hezhong, Xinte and Yundu. The vast majority of the remaining enterprises can not make cars, and a few of them can not sell them.
Since its establishment, byt auto, with an international background, has been targeting the European and American markets since its establishment. One traveler once asked a senior executive of a new force who also wanted to export to Europe and the United States whether he was worried about the competition from byton. The other side only laughed, “let’s wait for them to mass produce.”. A word becomes a prophecy.
Most of them are new ones. Byton had planned to achieve mass production in the middle of 2020, but now there is no news. Chen Yu, a former employee who joined the company in June 2018, recalled, “byton’s mass production plan started to be postponed a few months after I joined the company. Originally, it said that mass production would be started in mid-2019, and then postponed to the end of 2019, and then to the middle of 2020, which was pushed back at least four times before and after.”
The Ranger car, which is called the “ancestor” of the new force of car making, is one of the representatives. It and Weilai were established in the same year in 2014. As the earlier entrants, Ranger has also formulated a complete mass production plan: the mass production version of Ranger X was released in the fourth quarter of 2018, and the self built Huzhou factory was completed in the first quarter of 2019 and entered the trial production cycle, and the sales volume reached 30000 vehicles in 2020. However, a traveler in Huzhou factory saw that the construction of the factory has been stagnant for a long time. There is only a security guard and a dog on duty at the gate, and the park is full of weeds.
There is only one security guard and one dog left in the factory
An employee who joined Ranger automobile as the purchasing director in 2016 disclosed to one traveler: “the Ranger car has not even reached the prototype stage, and it still belongs to the initial research and development stage in the end. Our purchasing department does the preparatory work, such as helping the R & D department find suppliers to exchange vehicle data. As there is no sample car, the supplier’s mold has not been opened, so the purchasing department has no negotiation capital. ” Ranger car officials did not respond to a request for an interview.
The difficulty of making cars is far underestimated, as all practitioners say. It’s easy to build a star executive team, but the scale of mass production tests the comprehensive quality of the enterprise, including design and development, supply chain management, factory construction and vehicle manufacturing qualifications.
“The Internet is a long board model and a long tail theory, and car building is a short board theory and resource model.” He Xiaopeng, chairman of Xiaopeng automobile, believes that there are many automobile boards, and any one of the short boards will lead to the deviation of safety, quality, sales and brand of cars, and it is not enough to rely on long boards to do a good job.
It is understood that many new forces rely heavily on supplier outsourcing and lack core R & D capabilities. At the same time, it is difficult for the first vehicle to pass the testing link, let alone market delivery. A person in the automobile industry told a traveler: “some of the technologies applied in the intelligent cockpit of the new force of car building are developed by themselves, but the underlying design and engine technology of automatic driving are still tier 1, and a lot of things on a car can be said to be saved. Even after sales, it is difficult to reduce the cost on a large scale, or relatively less. ”
Dr. Xu Daquan, executive vice president of Bosch (China) Investment Co., Ltd., once disclosed that Bosch can provide a complete set of automatic driving solutions for new car manufacturers. For new car manufacturers, cooperation with Tier 1, a traditional giant like Bosch, has become an indispensable link. However, new car manufacturers have different requirements for the function realization of automatic driving products. Bosch can not achieve this kind of deep cooperation with each new car manufacturing enterprise, and can only provide general products.
The number of patents of each company can be used as evidence of core R & D capability. A traveler inquired the website of the State Intellectual Property Office and found that the number of authorized patents of byton was 120, mostly focusing on appearance patents, such as vehicle door panels, and even applied for patents for the appearance design of shop counters and ceiling. However, the number of authorized patents in Bojun is 176, which involves many fields of vehicle development. The number of authorized patents of Weilai is 1612, the most of which are batteries, power exchange mode and other core technology fields. The number of authorized patents of Xiaopeng, ideal and Weima are 443, 724 and 852 respectively.
The next hurdle is the factory. At present, powerful new forces of car making choose to build their own factories, while some new forces of car making choose OEM production.
Take the future automobile of self built factory as an example. It got the qualification of car making earlier, but now it has become a marginal enterprise. A former government relations department official of Qiantu automobile told a traveler: “Qiantu got the third piece of electric vehicle qualification, which is fast, but the factory acceptance has been delayed for a long time. When the factory is completed, many cars have already started to run. Because the workshop is half built, it is suddenly said that the two workshops can not meet the environmental protection standards, so the design of the workshop must be modified. Many factory building and acceptance standards have not been approved by the government in advance, and half of them have to be changed suddenly. ”
However, bothshire’s plan to build a factory failed in repeated revisions. Li Zhen told a traveler: “when I joined, the planned capacity was 100000, and then it was changed to 150000, 200000 and 300000. If the production capacity is adjusted, the construction scheme should also be adjusted, and all the previous work should be overturned. In 2018 and the first half of 2019, we are doing repetitive and meaningless work. I think it’s the management who doesn’t know what to do with the Nanjing factory. They are just verbal and arbitrary instructions. ”
The car is built. The next step is how to sell it. “Traditional OEMs sell cars to dealers without considering market feedback, but new forces need to face customers directly. These are two completely different market logics.” A former management of the future automobile told a traveler.
In the view of Chen Yu, who is in charge of the sales work of byton, the middle and senior management of traditional automobile enterprises are not ready to deal with this change. He believes that the sales of new energy vehicles should focus on the customers, and the company will provide feedback. However, the leadership of byton still formulates a plan for further implementation, which shows that the management can’t listen to the feedback from the front line, and can’t integrate customers with the thinking of dealers.
It is difficult to build a car. “It’s very expensive to do a good job in basic capabilities, including design and development capabilities, supply chain management capabilities, manufacturing capabilities, and online and offline marketing services capabilities. The first is whether the basic ability can be built, and the second is whether the capital efficiency can be established Shen Hui, founder of Weima automobile, said that the company has gone through the 0-1 stage only after the basic capabilities have been established.
To start a business, you have to think about survival, but many people don’t
The collapse of the new force of car making is a management story of success and failure.
“All grassroots employees can stay in five-star hotels on business trips, and there are plenty of snacks and drinks in the office”. Once this was the company’s welfare that employees enjoyed talking about, now the evaluation turned to “although the staff experience is very good, it is not good for the long-term development of the company”.
“The process and equipment of the factory are all very good brands. Cooperating with international first-line suppliers, we spent a lot of money to build a good car”. The high-end positioning once won the applause of flowers for the company, but now it begins to reflect, “why do start-ups not use second-hand equipment? At least one-third cheaper, start-ups should find ways to make themselves survive first. ”
“Once, the founder paid out his own pocket and mortgaged a real estate to pay wages to everyone.” the founder once won the recognition and trust of the company through this, but now it has become the evidence of the company’s outdated management style and doubtful financing ability.
Chen Yu told trip Yike that the first thing he did after he joined the job was to sort out the sales process. “This is done by Deloitte. The service fee is tens of millions, which is very expensive. At that time, byton completed round B financing, which was the time when it had the most money. It spent a lot of money, and the standard of cooperation was very high. All of them were on the international front line. ”
The money ran out quickly. A middle-level supervisor of byton’s production and manufacturing department told Yike that since the middle of 2019, Baiteng realized that financing was not easy and the cost began to be tightened. However, a lot of money had been spent and contracts had been signed, so it was too late.
High salary is the biggest weight for the new forces to attract talents, but when the company needs to economize on food and clothing, these expensive talents have become a burden eager to get rid of.
For example, byton has to pay a high salary for bificom, one of its founders, including a base salary of 565000 euro per year, bonus and stock option, as well as various expenses such as housing, car, children’s education, tax consultation fee, pension, insurance, etc. Biden even paid his wife, who was a qualified dentist in Germany, but could not practice in China with her husband, so he agreed to compensate her.
The Nanjing headquarters of byton
Meng Wen commented that byton’s founders came from Europe. They were not continuous entrepreneurs, but professional managers, who had problems in cost operation control. At the same time, it also depends on whether the founders and the team can evolve. Obviously, byton has not done enough to lead the enterprise transformation and meet the challenges.
A number of employees and industry insiders believe that an important problem of byton lies in the lack of entrepreneurial gene and the inability to economize. “We are afraid of enterprises with high foreign enterprise style and high entry and exit specifications,” an investor told a traveler. Whether the company can make good use of investors’ money in internal control, rather than burning money recklessly, is something that will be examined when investing.
A number of new force employees interviewed by a traveler pointed to the company’s problems as “insufficient vision” of the management.
Li Zhen believes that the management level of Founder Huang Ximing is far behind the technical level. “For example, the production capacity of the factory has been changed frequently. I can’t say if Mr. Huang knows how to make cars, but if he doesn’t, why don’t he ask for the opinions of other deputies? He talks about everything. He recruited a lot of talented people, but he didn’t play his due role.” Huang Ximing did not respond to a request for comment from a traveler.
The management of futuristic automobile also felt that the company’s management style is relatively old, which is not conducive to stimulating the innovation potential. “The management is the supplier of the main engine plant. They are old and used to the project system of Party A and Party B. therefore, we need to set up a project when we do internal development. Moreover, the management does not send e-mails and must sign on paper for confirmation. A project needs to be signed by more than a dozen people. ”
The infighting of senior executives is also a problem that new forces of car building often face. On January 23, 2019, Biden CEO Bi Fukang thought that “without warning or any reason, the CEO’s position was removed at the board meeting, and I became a puppet. As the nominal chairman, I was responsible for limited fund-raising and public relations responsibilities.” In April, Bifukang and a number of executives who joined Byron left. At the Shanghai auto show, he directly appeared at the booth of his competitor icornick, who introduced the future development plan of the company on behalf of the latter as CEO, which caused public outcry.
“After bificom left, we can feel that the company’s development speed has obviously slowed down because he has taken away a lot of senior executives in Germany and the United States, who are very important to Byron’s technology and market. Because of the infighting among senior executives, the financing parties are also on guard, and the company’s R & D and financing are not good. This is reflected in the result that the delivery time of mass production is delayed again and again. ” Chen Yu told a traveler.
At one time, the new car was pinned on the hope of reforming the accumulated habits of the automobile industry, but from the practical operation point of view, the reform is difficult to achieve overnight, especially when the new car entrepreneurs are born in the automobile industry, the management advantages and disadvantages are accompanied.
Li Bin, the founder of Weilai automobile, once told a traveler that the automobile industry should have been the most efficient industrial integrator, instead of being so bureaucratic and inefficient as it is now.
Xu Heyi, chairman of BAIC group, also said publicly that he was “not satisfied with and envious of” the new car. Dissatisfaction means that BAIC can do what new cars can do, while admiration mainly refers to the system. “This reflects that as a traditional domestic automobile industry, the next step must be to speed up the reform of state-owned enterprises, which must be changed from the perspective of development and competition.”
Chen Qi once served as the manager of singularity automobile. He missed that when he first joined in 2017, the new forces “had a high spirit and put forward various ideas and service modes. Everyone was very restless, rich and passionate.” But three years later, his attitude has changed. The new forces have “encircled money, occupied land and dug up people, but they have no output and wasted a lot of resources.”
“Internet companies make cars by fooling people around all day long.” During the 2018 Beijing auto show, Li Shufu, chairman of Geely Group, denounced in his speech.
Li Xiang, the founder of ideal automobile, also said publicly recently that among the hundreds of new car manufacturing enterprises, there are no more than five of the two most basic and fundamental duties that can be achieved by adhering to today’s principle of never defaulting on employees’ wages and never defaulting on suppliers’ payments.
Chicken feather on the ground. In Nanjing, Shanghai, and the headquarters of many new forces, angry employees gathered to ask the company to pay back their salaries with banners. Among all the new force employees interviewed by reporters, there were different degrees of wage arrears, which seriously affected their personal lives.
The person in charge of the personnel department of a front-line joint venture automobile enterprise disclosed to trip Yike that due to the new forces of car manufacturing, many talents were lost in the company in 2018, and the turnover rate doubled compared with that before 2017. “This is unconventional competition. We can’t change the salary system because of this, and we can only accept resignation.” In the second half of 2019, the person in charge observed that the talents who had left the traditional engine plant began to flow back.
At present, some local governments have come out to cover the wages owed by employees. At the end of 2018, Tongling City of Anhui Province issued a special document to express its support when it came to the issue of arrears of wages of singularity automobile, saying that it would perform the duties of shareholders and help singularity automobile tide over the difficulties. In the middle of 2020, sailin automobile also had a capital problem. Wang Xiaolin, the founder, stayed in the United States. The state-owned shareholders from Nantong, Jiangsu Province, promised to solve the problem of arrears of wages of the employees who had left their jobs.
Another problem for local governments to solve is the land left behind by idle factories. In early 2019, Jiangxi Province was named and criticized by the national development and Reform Commission for overheated investment in new energy vehicles. Seven of the 18 projects had no information on commencement after the contract was announced. More than half of the 11 projects that have been started have not been completed on schedule.
Take Huzhou City of Zhejiang Province, where the Ranger automobile factory is located, as an example. Huzhou once regarded the project with an investment of 11.5 billion yuan as a local leading project. Leaders of four groups attended the opening ceremony. However, the construction of the factory has been stagnated for a year, and the hope of the production qualification of Ranger cars is dim. The factory construction is basically impossible to restart.
But what about a lot of land? In December 2019, the minutes of the public meeting of Wuxing district government of Huzhou City, Zhejiang Province show that the District Urban Investment Group will purchase the land of Ranger automobile industry project and dispose the construction in progress. This plan is conducive to invigorating land resources, resolving project risks and reducing disposal costs.
A leader of Huzhou Economic and Information Commission confessed to a traveler that although the project of introducing LETV and ranger cars basically failed, Huzhou did not take a detour, “allowing failure, after all, there is success only when there is an attempt, and there is no possibility of success without trying.” However, the leader also admitted that he would be more cautious in attracting investment in the future, such as attracting more powerful traditional automobile manufacturers to develop the new energy automobile industry. No matter how advanced the technology the company publicized, the focus should still be on the manufacturing industry.
A question looms: are more than 100 new force companies really coming to build cars?
Qiao Yudong, a former legal department employee who reported that sailin motor had embezzled state-owned assets, thought it was not. He obviously felt that the headhunting expenses and marketing expenses of sailin were extremely high. “We all feel that we have done so many years in the workplace.” the founder has the possibility of profit transmission in multiple links.
At present, in view of the problems such as the founder Wang Xiaolin and others suspected of providing false documents and misappropriating the huge funds of Jiangsu sailin by taking advantage of his position, the state-owned shareholder Nantong Jiahe has reported a case to the police, and the public security organ has accepted and carried out investigation according to law. Wang Xiaolin refused to let in any land. He announced that he would file an arbitration in Hong Kong and ask Rugao state owned assets to provide compensation for breach of contract.
Shen Haiyin, the founder of singularity automobile, has publicly said that nearly 70% of the hundreds of new force companies for making cars come not to build cars, but to obtain land and other resources by making cars. Although the companies that invest in the model are fighting high and high, most of them have no substantial investment in technology and products.
It’s hard to pick up the offer. On June 15, Bojun automobile, which has been established for four years but has not yet produced vehicles in mass production, issued an announcement announcing that it has failed to build a car and will sell various core technologies such as model platform. Please contact CTO Jerry Lavine directly for interested parties. However, a person familiar with the situation told a traveler that several waves of people expressed interest in Bojun’s B31 (the technical platform of Bojun’s first model) and contacted the company. However, after further understanding, they all gave up their intention to purchase, believing that this was not a complete platform and lacked a supply chain system.
“It’s very important to catch up with a new force in car making. This tuyere is how to quickly launch a car acceptable to young people, so as to quickly open up the popularity and market According to the people in the automobile industry mentioned above, however, most enterprises are not doing well. It is sooner or later that they will go out of business, and the epidemic situation has only become the last fig leaf.
But with so many people and so much money gone, we have to think about how to end it. According to Meng Wen, there are only three outcomes of the new cars: they survive and survive; they sell at a good price; and they can’t be sold. “In the end, I expect that the traditional main engine plants will enter the site for integration, but there will be various forms of investment and financing, mixed ownership and so on. Because traditional OEMs also hope that people with new car manufacturing experience will come in and talk about what exploration they have done to help the transformation of traditional OEMs. The longer the new forces stay, the lower the price will be. ”
The investors mentioned above have further analyzed to the traveler. Those new forces with problems in management and good teams and assets at the bottom can look for mergers and acquisitions. After all, investors in the early stage want to withdraw and some enterprises in the front also want to expand. But M & A is not only about finance, but also about the integration of business and culture.
“The good thing is, at least a few new forces have come out.” A person who once served as a middle-level manager of a new car manufacturing force in Shanghai said to a traveler.
(at the request of the interviewees, Li Zhen, Chen Yu, Chen Qi and Meng Wen are pseudonyms)