AutoBeta(AutoBeta.net)09/16 Report--

In the face of the severe epidemic, many companies have embarked on the road of bankruptcy. National Machinery Automobile announced on the evening of the 16th that Finoba Bavaria, a German subsidiary of the company's wholly-owned subsidiary China Automotive Industry Engineering Co., Ltd. (hereinafter referred to as "China Automotive Engineering"), due to the outbreak of the epidemic, the mainframe plant stopped production and was unable to resolve liquidity, and planned to minimize losses through bankruptcy. The losses caused by the bankruptcy are estimated to be between 1 million and 2 million euros.

National Machinery Automobile said that as Finoba Bavaria will face the situation of broken capital chain and inability to continue operation, bankruptcy will help to stop losses in time, and subsequent Finoba Bavaria will go through bankruptcy procedures in accordance with the provisions of German bankruptcy law. The losses caused by the bankruptcy are expected to be between 1 million euros and 2 million euros.

In addition, SAIC will actively work with all parties to find the best solution to minimize losses, and at the same time properly arrange the existing staff of Finoba Bavaria in accordance with the provisions of relevant local laws and regulations.

According to the announcement, Finoba Bavaria achieved operating income of 1.782 million euros and a net profit loss of 96000 euros in the first half of the year. As one of the mainstream car dealers in China, the performance of Guomi Automobile in 2020 is not optimistic. According to the financial report, in the first half of 2020, the operating income of AVIC reached 18.291 billion yuan, down 31.49% from the same period last year; the net profit of shareholders belonging to listed companies was 225 million yuan, down 45.03% from the same period last year.

It is understood that under the influence of the COVID-19 epidemic, China's automobile market continues to decline sharply, with automobile production and sales reaching 10.112 million and 10.257 million respectively in the first half of 2020, down 16.8% and 16.9% respectively from the same period last year. The domestic automobile market has shown weakness after two consecutive years of decline, but in 2020, coupled with the impact of the COVID-19 epidemic, the situation of China's automobile market has become further depressed, and the performance of automobile companies or dealer groups has declined to varying degrees. The recovery of performance in the second half of the year is still one of the main goals of major companies.

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