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For the 2019 auto market, we have become accustomed to the news of declining sales, profit losses, layoffs, unpaid wages and even bankruptcy.

Changfeng Cheetah is in such a predicament. According to media reports, in order to get out of the predicament, Changfeng Motor decided to sell or transfer its three major production bases to the local government, of which the third factory in Changsha will be acquired by Geely, and the Jingmen factory will be handed over to the local government. Chuzhou factory will be transferred, while Yongzhou plant will resume production in March next year.

In view of the current plight of Changfeng Automobile, Changfeng Automobile will prepare 1 billion yuan through the State-owned assets Supervision and Administration Commission, Changsha Municipal Government and Yongzhou Municipal Government, and implement debt-to-equity swap. Consider changing the nature of the land, such as converting industrial land into commercial land, Changsha City and Yongzhou City will formulate tax return support policies for not less than three years, and will also formulate policy support for the purchase of Cheetah cars.

Changfeng Group can be traced back to 1950, mainly engaged in vehicle research and development, manufacturing and sales, is an independent brand car company with 69 years of military quality inheritance and 35 years of car manufacturing experience. Changfeng Automobile originally owned Changfeng Cheetah and Mitsubishi brands, which were acquired by Guangzhou Automobile in 2009, only Changfeng Cheetah brand.

Judging from the current development of Changfeng Automobile, it is indeed beset with difficulties. On January 15 this year, Changfeng Cheetah recalled 147136 cheetah CS10 cars because of quality problems with automatic pedals.

On May 29, Changfeng Group decided to implement the "employee salary adjustment and burden reduction". The contents of the document show that in view of the rapid changes in the automobile industry, the company's serious production and operating losses, and serious underoperation of the production base, the meeting ensured survival and tide over the difficulties by means of salary adjustment, burden reduction and salary reduction.

An email examining the risk of bankruptcy circulated online on Oct. 9, showing that four car companies, including Cheetah Motors, will enter bankruptcy proceedings at the end of the year, and the industry chain of upstream and downstream auto parts suppliers is expected to have a total of about 50 billion yuan in bad debts.

Cheetah issued a statement the next day denying the bankruptcy rumors, Cheetah is actively dealing with the difficulties, and has taken a variety of measures to deal with the difficulties.

Cheetah's current predicament is largely due to the decline in car sales. Cheetah currently owns SUV and pickup models such as Mattu, CS9, CS9 New Energy, CS10, Q6, CT7 and so on. Cheetah sales fell from 125000 in 2017 to 77600 in 2018, bringing total sales to 33100 in 2019.

The pace of market updating is accelerating, and the low-end backward car companies will be out, which is the stage that China's automobile industry is facing at present. At the same time, under the severe background of the automobile market, the lack of product strength and R & D power leads to the continuous marginalization of Cheetah Motor. In fact, the cheetah problem is just a microcosm, including Junma, seahorse, Lifan and other car companies have also been in trouble, how long these enterprises can last, whether they can survive, there are many unknowns.

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