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In 2019, the entire automobile industry is very impetuous, new car sales continue to decline, some car companies have been marginalized, upstream and downstream supplier industry chain has been affected, even 4S stores are complaining that they are not making money. In such an environment, the huge Auto Trade Group, one of the top ten dealer groups in China in the past, fell into the current situation of bankruptcy restructuring and debt crisis, of which the debt may be as high as 24.7 billion yuan.

The huge Group announced that the Intermediate people's Court of Tangshan City, Hebei Province had ruled to accept the creditor Beijing Jidongfeng Automobile sales and Service Co., Ltd. to restructure the giant group, and appointed the liquidation group of Giant Automobile Trade Group Co., Ltd. as the giant group manager.

At the same time, the "reorganization Progress" announcement showed that as of November 7, 2019, a total of 286 creditors had declared their claims to the administrator, totaling 24.699 billion yuan. The amount of the creditor's rights shall eventually be recorded in the table of claims confirmed by the court.

At the same time, the giant group also issued a risk warning, and the court has ruled that the company has entered the reorganization process. According to the relevant provisions of the Enterprise bankruptcy Law of the people's Republic of China, if the reorganization fails, the company will be declared bankrupt by the court.

At present, large groups are speeding up the divestiture of related assets and improving their operations in order to restore their ability to make sustainable profits.

At the end of 2018, the giant group had 418 brand authorized stores, and the company had 359 brand licensed stores in the first half of 2019, a decrease of 59.

While still at a loss in the first half of the year, giant announced a number of executive positions and set up three major business departments to improve management.

In the first half of 2019, the giant group lost 1.199 billion yuan, and its operating conditions did not improve substantially. The large group said it was mainly due to the continued decline in vehicle procurement and sales and the decline in the number of stores licensed by the brand. Affected by the company's closure and transfer of some stores and the cancellation of brand authorization, the number of car brands and brand authorized stores operated by the company decreased compared with the end of last year.

The giant group further stated that it was currently undergoing judicial restructuring, with the goal of saving the debtor, retaining the legal entity of the debtor and restoring sustainable profitability. If the debt risk of the company can be properly resolved through the restructuring process, the company will return to the track of healthy development.

At the same time, the giant group said in a statement that in order to improve the corporate governance structure, adapt to the new situation of the company's development, simplify management links, clarify the boundary of rights and responsibilities, and maximize the interests of the group as a whole, abolish the establishment of the brand region and the post of general manager of the brand region, and set up the automobile brand division, the park management department and the commercial vehicle division.

The established Automobile Brand Division includes Subaru Brand Division, Mercedes-Benz Brand Division, FAW Brand Division, FAW Toyota Dongfeng Brand Division, BAIC Guangzhou Automobile Brand Division, Audi Brand Division, and Integrated Brand Division. Its responsibility is the overall planning and supervision management of the business operation level, and the management characteristic is "linear vertical management".

Giant's current dilemma is not alone, but it also shows the crisis faced by the car industry in the cold winter and traditional dealers, and its current situation is just a microcosm of car dealers.

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