AutoBeta(AutoBeta.net)06/29 Report--

According to media reports, more than 100 BAIC Magic Speed dealers went to Chongqing BAIC Yinxiang Automobile Co., Ltd. on June 28 to defend their rights and asked BAIC Yinxiang to change the current proposal of "dealer car discount of 40% for eight years of principal repayment." It is understood that dealers across the country have owed a total of 340 million yuan, and if the matter is not resolved, they will take legal measures.

According to the data, BAIC Yinxiang was founded in August 2010, and BAIC Magic Speed is a brand launched by BAIC Yinxiang Automobile Co., Ltd. in March 2014. According to Tianyan check, in the current equity structure of BAIC Yinxiang, BAIC Automobile Group accounts for 26%, Chongqing Yinxiang Trading Co., Ltd. accounts for 23.3%, Chongqing Yinxiang Industrial Group accounts for 22.03%, Chongqing Yinxiang Investment and Development Co., Ltd. accounts for 16.02%, Guokai Development Fund Co., Ltd. accounts for 12.65%. BAIC Group is the single largest shareholder of BAIC Yinxiang, but the shareholding of Yinxiang system has reached 61.35%, which is the actual controlling shareholder.

In July 2018, BAIC Yinxiang factory issued a holiday notice: due to operational difficulties, BAIC Yinxiang stopped production for 40 days. But 40 days later, BAIC Yinxiang showed no signs of resuming production, and then it was reported that BAIC Yinxiang would go bankrupt and close down.

In April 2019, a number of BAIC Yinxiang dealers went to BAIC's headquarters to protect their rights to recover hundreds of millions of yuan paid by dealers to BAIC Yinxiang in advance. After safeguarding its rights, BAIC reached an agreement with dealers to "repay 20%, 30%, 30% and 20% respectively on May 25, 2019 and before the end of June, July and August 2019." According to this agreement, BAIC should pay off all the arrears by the end of October 2019, but it has not been repaid on schedule several times in the middle, and the repayment has so far been only 9%.

On May 13, BAIC Yinxiang and Chongqing BAIC Magic Speed sales Company gathered 25 dealers across the country to announce a new debt disposal plan. BAIC Yinxiang hopes to repay all the outstanding debts of the dealers at a 40% discount over eight years, repaying interest in the first five years and repaying the principal from the sixth year. But dealers do not approve of such a disposal plan, some dealers said, "as small and micro enterprises, this way of repayment is obviously a fatal blow."

After the introduction of the new debt disposal plan, BAIC Magic Speed dealers were strongly dissatisfied. On May 14, a number of dealers went to the Chongqing Letters and visits Office and put forward a number of requirements, including "all the contents of the framework agreement signed at BAIC Group on April 29th, 2019, before May 28,2020; if no payment is received, the dealers will stop the after-sales service to 1 million BAIC Magic Speed customers in the country on May 18th" and so on.

In addition to being dissatisfied with the way the debt was repaid at a 40 per cent discount for eight years, dealers expressed concern about BAIC Yinxiang's next development. Some dealers said that after the Dragon Boat Festival, dealers from all over the country will also go to Chongqing to protect their rights.

According to the latest sales, BAIC Yinxiang's sales plunged 95.5 per cent to 1937 vehicles from January to May, with sales falling 84.5 per cent to 280vehicles in May. With the overall decline of China's auto market, the survival crisis of independent brands has become more prominent, and low-end backward brands may face the fate of market elimination. Domestic auto companies such as Cheetah, Dongfeng Yulong, Lifan, Zhongtai and Huatai are facing great delisting risks.

For now, it seems that BAIC Yinxiang's development in the Chinese market for so many years has not left anything memorable, only that dealers have been forced to protect the rights of the group, and the helpless situation that many car owners have no place to repair because of car quality problems.

After circling around for decades, BAIC Yinxiang finally left chicken feathers in the Chinese market!

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