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Representatives of nearly 100 BAIC Magic Speed dealers across the country gathered in front of the Beijing Automobile Group building to protect their rights, asking for a total of about 200 million in arrears, while the protection of dealers' rights has been going on for several days. The rights protection incident once again exposed the operational difficulties of BAIC Yinxiang Company and the shortage of capital chain. It has been 10 months since the suspension of production was announced, and the problem of BAIC Yinxiang has not been solved so far.

"BAIC pays back money" is the slogan of their visit and the purpose of coming here. The amount demanded by rights protection dealers ranges from tens of thousands to more than 10 million, totaling about 200 million, including car booking, deposit, rebate, various losses, and so on. Dealers lost confidence in BAIC Yinxiang and embarked on the road of safeguarding their rights.

In the "letter" from BAIC Yinxiang National Dealers Union to BAIC Group, it is pointed out that manufacturers still require dealers to pay for taxis in the case of stopping production, dealers are not able to bring up cars to sell, and the money they have asked for for many times is still not refunded; during this period, the manufacturer assigned the car pick-up task to the dealers, deliberately resulting in the dealers' terminal rebates could not be obtained, resulting in heavy losses; without the provision of auto parts, after-sales service could not be guaranteed. Do not cash in the construction of stores, vehicles, after-sale rebates and so on.

Dealers across the country require manufacturers to refund all car money, rebate, deposit and other money, compensate for the loss caused by the dealer since the suspension of production, recycle inventory vehicles, and so on.

Some dealers said that the factory had been stuck in production for a long time, but there was no car to pick up, which led to the difficulties of the dealer's operation, and what was worse, the car could not be sold. Even if it was sold at a "jump price" at a discount of 50%, consumers might not be willing to pay the bill, and a car would have to pay at least 30,000 yuan.

BAIC Yinxiang is a vehicle manufacturing enterprise jointly established by Chongqing Yinxiang Industry and Beijing Automobile Group in 2011, in which three enterprises in Chongqing Yinxiang hold a total of 61.35%, and BAIC accounts for 26%. BAIC Yinxiang mainly produces "BAIC Magic Speed" brand cars, with H Series (MPV) and S Series (SUV) two major product camps, experienced blowout growth in the early years, products mainly hit the low price strategy, focusing on 5-100000 yuan SUV and MPV market, with problems in the capital chain, BAIC Magic Speed also briefly disappeared in the market. In addition, Yinxiang Group also has a speed car brand, which has been established for only three years.

With regard to the protection of the rights of dealers in front of BAIC, BAIC tried to "get out of touch", claiming that BAIC is neither a major shareholder nor a controlling shareholder, let alone participate in the actual production and operation of BAIC Yinxiang, but after the business difficulties occurred, it took positive measures with the Chongqing Municipal Government to help the enterprise resume its development.

Subsequently, the relevant instructions issued by BAIC Yinxiang first acknowledged the problem of the capital chain, and then led to the overdue accounts payable of some related enterprises, affecting the normal operation of the majority of sales and service partners and customer service, which is deeply sorry.

BAIC Yinxiang promised to resume all main model production and spare parts supply in May, and recently released the progress of restructuring, gradually solving the problems left over by history, and hoped that dealers could tide over the difficulties with it.

Capital chain problems directly led to BAIC Yinxiang almost stagnant, factory shutdown, arrears of suppliers, arrears of distributors, arrears of employees' wages and so on. Suppliers and dealers also face difficulties and have taken actions to protect their rights one after another.

It is reported that BAIC Yinxiang's foreign debt has been measured in units of "100 million". At the same time, some dealers said that BAIC Yinxiang was heavily in debt and lawsuits, and dealers thought it was impossible to get through by legal means, so they adopted such a way to exert pressure.

In October 2018, after hard negotiation with the Chongqing Hechuan government, BAIC Yinxiang received a total capital injection of 2 billion yuan from BAIC, Chongqing Hechuan government and Yinxiang Industries, and BAIC Yinxiang announced the news of resumption of production in December. It is just unexpectedly that the internal problem of BAIC Yinxiang is even more serious than we imagined. Now the main model has not yet resumed production, and there are no cars to sell. It has been nearly 10 months since the suspension notice came out.

In 2018, China's overall car market declined, and the casualties of independent brands became more prominent. Low-end backward industries are facing the pain of transformation or being eliminated by the market. Many domestic car companies are under the same pressure as BAIC Yinxiang. Even if BAIC Yinxiang resumes production in May as scheduled and launches new models in the second half of the year, under such a market trend, is there still a market for the marginalized magic speed brand? For BAIC Yinxiang, an independent auto company, I am afraid it will be subject to a greater test.

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