AutoBeta(AutoBeta.net)06/28 Report--

Yulona Zhijie, who is rumored to have abandoned the mainland market, will spread new news. Wu Xinfa, director and general manager of Nazhijie (Hangzhou) Automobile sales Co., Ltd. has confirmed his resignation and has applied for retirement as one of the founders of Dongfeng Yulong, according to media reports.

At the same time, Chen Jinquan will become the general manager of Yulong (China) Automobile Investment Co., Ltd.

It is understood that the 61-year-old Wu Xinfa joined the Yulong Group as early as the age of 24, and successively served as the manager of the business department of the Yulong Automobile Manufacturing Company, the general manager of the Philippine Nissan Motor Company, the general manager of the Yulong Nissan Motor Company, and the general manager of Dongfeng Yulong Automobile Co., Ltd.

With the rumors of delisting and the departure of senior executives, Yulongna Zhijie is even more confused in the mainland market. Dongfeng Yulong Automobile Co., Ltd., established in December 2010, is a joint venture between Dongfeng Motor Company and Taiwan Yulong Group, each holding 50% of the company. it is the first automobile manufacturing enterprise on both sides of the Taiwan Strait to be positioned as a Greater China independent brand and integrates vehicle research and development, production, sales and after-sales service. The company is located in Xiaoshan, Hangzhou. After its establishment, Dongfeng Yulong mainly produces and sells its own brand "Na Zhijie" automotive products.

Due to poor management, product problems and other reasons, Dongfeng announced in 2017 that it would withdraw from the operation and management of the joint venture company and participate in the daily operation only as an investor, with Yulong being fully responsible for the operation of the joint venture company. At the same time, Yulong also established Na Zhijie (Hangzhou) Automobile sales Co., Ltd., and increased investment in the mainland market.

Unfortunately, in view of brand, product and other problems, Dongfeng Yulong Na Zhijie has not been developing smoothly in recent years, and has almost been forgotten by consumers. Even if na Zhijie launched URX's new medium-sized SUV at the end of last year, it failed to save na Zhijie's sinking sales.

In 2015, Dongfeng Yulong Na Zhijie brand reached its peak annual sales of 60,000 units, experiencing a "brilliant" moment. Due to the stagnant level of research and development, problems with product strategy and the collapse of user reputation, Na Zhijie's sales plummeted, falling to just 7056 vehicles in 2018, down 61 per cent from 2017. In 2019, Na Zhijie sold only 1947 vehicles, down 72.4% from a year earlier. In 2020, Na Zhijie sold only 7 units in May, down 94.3% from a year earlier. From January to May, cumulative sales reached 43, down as much as 92.5% from a year earlier.

Sources pointed out that at present, Na Zhijie basically does not have the sales support of dealers, almost rely on the second network point of sale. Due to the low sales volume, the production base in Hangzhou is also in a state of production standstill.

In June this year, there were media reports that Yulong Zhijie planned to withdraw from the mainland for listing, and Dongfeng Yulong may face the fate of shutting down and delisting. In response to the matter, Dongfeng Motor said: "both shareholders are discussing the development of Dongfeng Yulong and there is no solution at present."

Cui Dongshu, secretary general of the Federation, said, "it is a great pity for Yulong to withdraw. This also reminds other brands to increase their technology investment in China's local market, focus on improving product technology, rely on products, rely on comprehensive performance, enhance brand reputation, and gain consumer recognition. "

Perhaps in the impression of many consumers, Na Zhijie is a brand living in a joke.

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