AutoBeta(AutoBeta.net)12/21 Report--

According to China Business report, Huachen Renault Gold Cup has suspended wages, social security and provident fund contributions (health insurance only).

The first employee of brilliance Renault Gold Cup disclosed to China Finance and Economics the information of the meeting on December 20: 1, wages will be suspended from now on; 2, all kinds of insurance and provident fund payments will be suspended (only medical insurance); 3. Heating expenses have been put on the agenda this year. Whether to reimburse or not to wait for the result. This information is conveyed to every employee, solicit opinions, submit an application and report to the employees who have individual difficulties.

The above employees said that at present, employees can leave voluntarily, and the labor contract can be terminated in 1 to 2 days, and some people need a medical examination. The employees who leave the workshop must first communicate with the relevant responsible persons to complete the transfer of work in the workshop.

In addition, some suppliers told China Finance that brilliance Renault Gold Cup had been in arrears for several months and had taken brilliance to court. The supplier said, "although we have won the case, there is still no explanation." Now let's see if brilliance Renault Gold Cup appeals. If not, we are going to apply for enforcement. "

In response to the above news, the media asked Huachen Renault Gold Cup for confirmation, but there was no response before the press release.

Brilliance Renault may be a stranger than Dongfeng Renault, but the mention of the Golden Cup may be understandable. Brilliance Renault Gold Cup is the predecessor of Shenyang brilliance Golden Cup Automobile Co., Ltd. (hereinafter referred to as "Golden Cup Automobile"), which was first born in 1989, and is one of the earliest brands engaged in light commercial vehicles in China.

In the following 30 years, Golden Cup launched best-selling models such as Sea Lion and Grace. By 1997, the Golden Cup ranked first in the country in the field of production and sales of light customers. By 2010, the number of Jinbei cars in the market will reach 1 million, with a market share of 75%, ranking first in China's commercial vehicle market for 19 years in a row.

However, with the change of market demand and the rise of brands such as Jiangling Motor and SAIC Chase, Jinbei Automobile began to decline. Sales of Golden Cup cars fell from 96000 in 2015 to 23000 in 2016, according to data. To turn things around, brilliance, as a shareholder, introduced a new partner, Renault.

In December 2017, brilliance China transferred 49% of its shares in Shenyang brilliance Gold Cup to Renault at a price of 1 yuan, and established brilliance Renault Gold Cup Automobile Co., Ltd. After the establishment of brilliance Renault, the company plans to produce and sell light commercial vehicles under the three brands of Golden Cup, Renault and Huasong, and the models will be localized to produce three major categories of vehicles-MPV, medium van and van, large van and van. At the same time, it also plans to achieve annual sales of 150000 units by 2022, and plans to deploy electric cars ahead of schedule. Surprisingly, the first model of brilliance Renault Gold Cup was not a commercial vehicle, but a medium-sized SUV called Guanjing, which was a bit of a sensation at the beginning, after all, it was a new model with both brilliance and Renault technology, but in the end it didn't perform well.

Some people in the industry pointed out that Jinbei Automobile was in the leading position, but it did not strengthen independent technology research and development to ensure the continuous improvement of product strength, but passively responded to regulations and fierce competition, and finally fell into a dilemma. Of course, it also has a lot to do with Renault. As a Sino-French joint venture company, brilliance Renault Gold Cup has not introduced Renault models since its establishment four years ago, and the new cars launched have failed to keep up with the pace of the market, and the research and development technology lags behind, making it difficult to cope with the increasingly fierce market. According to the data, the sales of Huachen Renault Gold Cup from 2018 to 2020 were 43000, 40000 and 23000 respectively.

Huachen Renault's problems have long been apparent. In July 2020, the media exposed a brilliance Renault personnel optimization contract document. The document shows that by the end of April next year, brilliance Renault Gold Cup plans to optimize 650 employees, accounting for about 20% of the current Shenyang factory employees, a move interpreted as a 20% layoff, while the document also involves layoff compensation and other related issues.

In response to reports about the company's layoffs and compensation arrangements, Renault China responded: "No (layoffs), this is part of the change plan, no one will be formally abolished, to encourage organizational competitiveness."

Since then, there have been rumors of internal unrest in Huachen Renault, and in May this year, there were media reports that Huachen Renault had stopped the operation of a number of important projects, staff left intensively, and French experts were ready to withdraw one after another. In September, the French newspaper Echo reported that Renault was rectifying its business trapped in the Chinese market and was negotiating to end its joint venture with brilliance.

Although the news is still unclear, but whether it is Renault or brilliance, the current market situation is not optimistic. As early as April 2020, Dongfeng Renault shareholders announced that the joint venture company officially ceased operation, Renault transferred its 50% stake in Dongfeng Renault to Dongfeng Automobile Group, and Dongfeng Renault stopped the business activities related to the Renault brand. At that time, Renault Group released the latest strategy, the future Renault Group's business in China will focus on light commercial vehicles and electric vehicles, which will constitute the two pillars of its business in China in the future. However, from the current point of view, whether it is light commercial vehicles or electric vehicles, Renault is not doing well in China.

In the electric car market, Renault bought a stake in Jiangling Group New Energy Automobile Co., Ltd., becoming the largest shareholder. The first model is "Yi", which was officially listed on September 26 this year. The price range is 13.98-195800 yuan. The new car is located in a compact pure electric car, and single-motor and dual-motor versions are available. However, sales were less than 100 in both months, including 39 in October and 88 in November. With Jiangling New Energy alone, it is difficult to talk about "returning to the Chinese market".

Of course, Renault, the world's largest car market, is not going to give up and plans to form joint ventures with more powerful car companies. On August 9, Zhejiang Geely holding Group announced that it had signed a memorandum of understanding with Renault Group to establish a long-term partnership. In China, the two sides will jointly develop Renault-branded hybrid models based on Geely Holdings' platform technology. In South Korea, the two sides will cooperate based on the Lectra energy-saving platform to jointly develop models suitable for the Korean market.

There are signs that China, as the world's largest automobile market and the largest new energy vehicle market, Renault will increase the development of the new energy vehicle market and reshape the business model in China in order to achieve better development. However, whether it is Dongfeng Renault, Huachen Renault, Jiangling Renault, that is, the passenger car market, commercial vehicle market, and electric vehicle market, Renault's performance in China is not optimistic. Will Renault reproduce the historical situation after working with Geely? how to achieve a breakthrough and regain Chinese consumers' confidence in the brand is the primary problem that Renault has to think about and quickly solve.

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