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Now Lifan is heavily in debt and is in a business crisis, and Lifan companies have been applied to the court by creditors to enter the bankruptcy restructuring process. The huge debt has made it difficult for the former independent car giant. It is reported that after the court accepted the bankruptcy reorganization case of Lifan enterprises, its assets also officially began bankruptcy auctions. Recently, 44 imported Mercedes-Benz cars from Lifan subsidiary appeared on JD.com 's auction platform, but because there was no buyer's bid, Lifan has cut nearly 3 million yuan for a second auction.

It was learned on JD.com 's auction platform that Chongqing Lifan Industrial (Group) Import and Export Co., Ltd. disposed of 44 parallel imported Mercedes-Benz cars and was currently conducting a public auction. The vehicle list shows that the 44 imported Mercedes-Benz cars were manufactured between August 2017 and May 2018, and are Mercedes-Benz commercial cars, specifically 4 VITO, 9 METRIS and 31 Mercedes-Benz V250.

According to the auction information, the vehicles are located in the bonded area of Zhangjiagang City, Jiangsu Province, and the regulator is the Fifth Intermediate people's Court of Chongqing. Earlier, the court had ruled to accept the bankruptcy reorganization case of Chongqing Lifan Industrial (Group) Import and Export Co., Ltd.

The first auction ended at 00 o'clock on October 28, and even though it attracted more than 10,000 onlookers, there was no bid. The starting price is 14.31 million yuan, and bidders are required to pay a deposit of 715500 yuan, with a price increase of 50, 000 yuan and integer times.

After the failed auction, the second auction information of the vehicles has been hung on the platform, and the starting price and deposit have been lowered. Auction information shows that the starting price of the second auction is 11.448 million yuan, a decrease of 2.862 million yuan compared with the first auction; bidders have to pay a deposit of 572400 yuan, which is also reduced by 143100 yuan; while the price increase remains unchanged, it is still 50, 000 yuan and its integer multiples; the auction starts at 0: 00 on November 4.

It is understood that there is no evaluation of this batch of cars, and the starting price is determined by inquiring about the prices of the relevant vehicle purchasers and refitted vehicle manufacturers in the industry.

According to the auction information risk tips, it is learned that the emission standards of these imported Mercedes-Benz cars are national Ⅴ. According to the relevant national policies, the latest license plate period of national Ⅴ emission standards vehicles is December 31, 2020. The buyer is required to bear the storage cost of 299900 yuan for the relevant vehicle from storage to November 4, 2020 (if the buyer does not propose the vehicle, he will continue to bear the storage cost for November 2020 and beyond), and the corresponding freight for the transportation of the vehicle from the warehouse to the designated place of the buyer.

Some media learned from the Chongqing bankruptcy court that on August 21, the court ruled to accept the bankruptcy reorganization cases of 22 Lifan companies, including Lifan Import and Export Co., Ltd., which was the first formal bankruptcy auction of Lifan assets.

The former "autonomous motorcycle king" and "autonomous car giant" have come to a dead end.

Founder Yin Mingshan began to join the motorcycle industry at the age of 54 and set up Lifan Industrial (Group) Co., Ltd., followed by the field of automobile manufacturing, and the Lifan automobile brand was born in 2006. In 2010, Lifan shares were listed on the Shanghai Stock Exchange, becoming the first private passenger car company in China to list A-shares, with a market capitalization of more than 30 billion yuan. As a result, the book assets of Yin Mingshan's family at the helm exceeded 11 billion yuan, and Yin Mingshan, who was 72 years old at that time, became the richest man in Chongqing.

With the change of the market environment, Lifan, which is entrenched in the low-end market, can not bear it at last. Since 2015, Lifan's car sales have declined one after another, to 2019 Lifan traditional passenger car sales fell to 22500, down 75.5% from the same period last year; new energy vehicle sales of 3091, down 69.5% from the same period last year.

Plagued by business problems, Lifan capital chain crisis broke out. In 2019, CCTV reported that the production base of Lifan passenger cars was at a standstill. Lifan recorded a loss of 4.682 billion yuan in 2019. Subsequently, Lifan was unable to pay off a number of maturing debts and was heavily in debt with lawsuits, and the creditors applied to the court for bankruptcy reorganization.

In an announcement of Lifan shares, the company revealed that Lifan shares currently have a currency capital of only 43 million yuan, maturing debts of 1.196 billion yuan, other property liquidity is poor, can not be realized, an obvious lack of solvency.

Lifan can be said to be a company dragged down by the automobile business. The latest production and marketing report shows that from January to August 2020, Lifan sold 1183 traditional passenger cars, down 94.5 percent from the same period last year; 661 new energy vehicles were sold, down 60.5 percent from the same period last year; and in the motorcycle field, Lifan sold 342175 motorcycles from January to August, down 15.6 percent from the same period last year. Lifan motorcycle sales are still stable.

The fall of Lifan is only a microcosm of the survival of the fittest in the domestic car market. In this context, car companies without brands, core technology and capital may collapse one after another in the future.

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