AutoBeta(AutoBeta.net)06/03 Report--

Zhongtai Motors, an independent company, is in deep trouble, and this huge automobile group with many sub-brands is "shaky". After the chairman Jin Zheyong was restricted from high consumption due to collective salary demands from employees, a notice that all employees had a holiday until the end of June next year, let Zhongtai Motors get involved in the whirlpool of public opinion.

On June 3, the media learned from insiders that Zhongtai Hunan Base issued a "notice on the company's employees' extended holiday" on May 29, saying that due to the downward pressure of the automobile industry and the serious impact of the epidemic, the holiday time of all the working staff of the base was postponed to June 30, 2021. It means that Zhongtai Hunan base will continue to stop production.

The holiday notice involves Hunan Jiangnan Automobile Manufacturing Co., Ltd., Xingsha Manufacturing Plant and New Energy Automobile Changsha Branch of Zhongtai Hunan Base. Hunan base is one of the many production bases built by Zhongtai Automobile Group in China. It is the key production base based on Zhongtai's acquisition of Jiangnan Otto in Hunan in 2007.

According to the document, Zhongtai Hunan Base Research decided to postpone the holiday again on the basis of the original holiday notice, involving all serving staff who signed valid contracts with the company until June 30, 2021. Zhongtai said that the move is due to the downward pressure of the automobile industry and the serious impact of the epidemic, and combined with the company's current situation to make a decision.

According to the notice, Zhongtai Automobile encourages employees to leave voluntarily and gives them certain incentive funds. The subsidy standard is: 3000 yuan per month × length of service accounting subsidy for those whose basic salary is higher than 3000 yuan, and for those whose basic salary is less than 3000 yuan, the deadline for this scheme is June 30th, 2020.

Zhongtai also emphasized in the holiday notice that after the expiration of the holiday, all the working employees moved to Xiangtan Tongrui Company to work, if the employees who could not go to work according to the requirements of the company were treated as absenteeism, and those who had been absent from work for a total of three days would be automatically discharged, and the employment contract would be terminated automatically. In addition, any consequences caused by the accident caused by the employee during the suspension of production and holiday shall be borne by the employee.

In response to the matter, some employees confirmed the news to the media and said that the company had not yet paid the basic salary since October 2019, but had only reissued a symbolic living allowance.

Since the second half of 2019, the news that Zhongtai Motor has encountered operational difficulties continues to come out, due to financial problems, the sixth national model can not adapt, etc., resulting in the production of Zhongtai almost stagnant, there are no cars to sell at the terminal. In view of this, news is also coming out that Zhongtai is seeking financing and emergency measures everywhere. In August last year, Zhongtai received a loan of 3 billion yuan from a number of banks as a rescue fund to resume production in stages.

In 2020, Zhongtai Automobile was repeatedly exposed that it owed wages, and the impact of the epidemic made Zhongtai even worse. So far, the national six model of Zhongtai Automobile has not been introduced to the market, and there are great problems in the recovery of production. Official data show that Zhongtai has set up vehicle production bases in Zhejiang, Hunan, Hubei, Shandong, Chongqing and other places.

Zhongtai Automobile continues to operate at a loss so that the enterprise can not bear the burden. Zhongtai's operating income in 2019 was 3.204 billion yuan, down 78.3% from the same period last year; net profit and loss was 9.294 billion yuan, from profit to loss. In the first quarter of 2020, Zhongtai achieved revenue of 209 million yuan, down 94.71% from the same period last year, and net profit loss of 417 million yuan, down 494% from the same period last year.

Zhongtai stressed in the performance report that the company is working hard to return to normal production and find ways to improve the business situation.

In April this year, Jin Zheyong, chairman of Zhongtai Automobile Co., Ltd., was restricted from high consumption because of a dispute over the sale and purchase contract, according to Tianyan inspection. Relevant information shows that Zhongtai Motor has 10 court announcements in April this year alone, mainly in sales contract disputes and advertising contract disputes.

Its own poor management and changes in the industry environment have accelerated Zhongtai to its predicament. Zhongtai, which has many sub-brands, has to 'slim down' to save itself, stop production in some bases, concentrate and integrate resources, and may be able to help Zhongtai out of difficulties. On the other hand, many independent brands have problems, which precisely reflects the competition rules of market superiority and slight elimination.

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