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According to media reports, Tengjun Motor in Guigang, Guangxi broke out in arrears to protect its rights. From the relevant pictures exposed, dozens of employees gathered at the gate of Tengjun car in Guigang, holding up banners to ask for salary, with the words "Guigang Tengjun car, return my hard-earned money" written on the white banner. It is reported that Tengjun Motor in Guigang, Guangxi, currently owes wages for as long as four months, and wages are not paid from July to October.

Is it a stranger to this car company? In fact, Guangxi Guigang Tengjun Automobile is Zhongtai Automobile Factory. According to the data, it was settled in Guigang in December 2016, with a total investment of 6.2 billion yuan. The scope of business includes research and development, production, sales and maintenance of cars, engines and spare parts, and so on. The vehicle industry covers four major product lines, namely, multi-purpose commercial vehicles, medium and large SUV, small SUV, and pure electric vehicles.

This makes sense. In the context of Zhongtai Motors' deep financial quagmire, life as its vehicle manufacturer is naturally very difficult, and it is inevitable that the capital chain is broken, leading to arrears of wages and protection of rights.

Since 2019, Zhongtai has been mired in arrears of wages because of a broken capital chain. On October 30, Zhongtai released its results for the third quarter of 2020. In the first three quarters, the company achieved revenue of 981 million yuan, down 72.68% from the same period last year; the net profit belonging to shareholders of listed companies was-1.563 billion yuan, down 105.67% from the same period last year. Zhongtai Automobile explained in the third quarterly report that the decline in revenue and net profit was mainly due to the production and operation difficulties of important subsidiaries and the impact of a sharp decline in sales.

Zhongtai Motor was filed for bankruptcy reorganization by its creditors because it was unable to pay off its maturing debts. On September 16, Zhongtai Automobile issued a notice saying that Zhejiang Yongkang Rural Commercial Bank Co., Ltd. on the grounds that Zhongtai Motor was unable to pay off its due debts and obviously lacked solvency, but still had restructuring value, submitted an application to the Yongkang people's Court for pre-restructuring of Zhongtai Motor.

Data show that Zhongtai Automobile is an automobile manufacturing enterprise with vehicle R & D, manufacturing and sales as its core business, with Zhongtai, Jiangnan and Junma three major automobile brands, covering sedan, SUV, MPV and new energy vehicles and other market segments. Zhongtai Automobile used to be a car company with a good momentum of development, launching a number of models in 2016, such as the T600 sports version, the SR9 and the New Damai X5, among which SR9 became Zhongtai's "star" products after its launch. Thanks to this, Zhongtai Automobile's cumulative sales reached 333100 vehicles in 2016, an increase of 50% over the same period last year, which is also the peak of Zhongtai Automobile sales.

However, due to the subsequent outbreak of quality problems, word-of-mouth has plummeted, Zhongtai car sales have been declining, after a decline in 2017, sales fell to 154800 in 2018 and only 116600 in 2019. In 2020, the production and operation business of Zhongtai Automobile almost came to a standstill. In the first half of the year, Zhongtai Automobile produced only 574 cars and sold 1417 cars.

In 2020, the knockout stage of the automobile industry will accelerate. Baiteng Motor, which burned out 8.4 billion yuan and still could not achieve mass production, announced the suspension of its business in China, and Boxun Motor, Sailin Motor and so on collapsed one after another. It is not only the new power of building cars, but also the traditional car companies. Lifan Motor and Zhongtai Motor were filed for bankruptcy restructuring, Huatai Automobile was not heard from, FAW Xiali, the "National Automobile", was sold assets, and even brilliance Group, which owns the BMW brand, was filed for bankruptcy restructuring. Under the competition of automobile brand stock, the automobile market is no longer simply building cars. Without sufficient technical guidance, product competition and financial support, more and more brands will withdraw from the market.

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