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The factory stopped production! A large number of dealers in Weima withdrew from the network.

2024-09-17 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)01/17 Report--

According to Weimar's official website, a total of 13 exhibition halls have opened in Beijing, but no contact details have been shown, and Weimar's official phone calls have not been answered. The interface news found the phone numbers of 9 of the exhibition halls from the network channel, but none of them could get in touch with the exhibition hall.

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According to media practice, the Weima user center at Wufangqiao has been emptied. This user center is the first Weima showroom in China and one of the largest dealer showrooms in Beijing. The store is one of the few Weima showrooms that can provide consumers with a full range of services such as sales, test driving, delivery and after-sale. It is understood that at its peak in 2019, the store sold thousands of cars a month and had a high number of customers, but as its performance declined year by year, dealers were gradually unable to support rental expenses and were eventually forced to move. However, as the user center has accumulated a certain number of customers, it will continue to insist, but because the rent of the original exhibition hall is too high, it will be merged directly with the Buick 4S store that has just moved to the new location. It is understood that the area of the original exhibition hall is 1100 square meters, and the annual rent is only about 2 million yuan, which belongs to a low level in the industry.

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The surrounding merchants said that the exhibition hall moved out a month ago and merged with another Buick showroom owned by the distributor. after the merger, Weima only set up a logo at the back of the exhibition hall, and obtained a small area in the after-sales workshop for vehicle repair. there are no other signs of the Weima brand. Weima staff said that due to the lack of booths and inventory parking space, matching parts have been unable to place orders, the current sales and maintenance work has been suspended, can only do some simple inspection and maintenance.

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A salesperson who once worked at a Weima dealer in Beijing revealed that due to poor sales in the past year, the dealer was unable to withstand tremendous operating pressure, and finally chose to stop all Weima-related business at the end of last year. After dealing with the overstock at a loss, he completely withdrew from the sales network. According to reports, shortly after clearing the inventory and no longer accepting new orders, the company also stopped the after-sales service of Weimar.

After visits and multi-party verification, Weimar's official website shows that only the shop is still open among the 13 exhibition halls in Beijing. In addition to the Beijing area, Weimar stores in Shanghai, Chengdu and other cities are also basically closed. According to the public information, the media called Weimar's dealer in Chengdu, and the dealer salesperson said, "We no longer sell Weima, it feels like it is on the verge of bankruptcy."... "

图片来源@视觉中国

Weima has become a "dangerous horse"! In the past three months, Weimar has become very active in the market, but it is basically negative news. In November 2022, Shen Hui, chairman of Weimar, issued an internal letter confirming the pay cut, while the Shanghai headquarters was exposed to layoffs and nearly half of the stores were forced to close. In December 2022, du Ligang, the co-founder of Weimar, was rumored to leave office and lost the case against Geely Holdings in the first instance. Wenzhou factory vehicle production has been stopped, and the assets of the company and its companies have been frozen.

At present, Weimar is facing a huge crisis in the three main operational links of production, sales and after-sales service. In terms of production, it was revealed that the Wenzhou factory had stopped production because there were no orders, and the on-the-job employees could only get a basic salary of 1700 yuan a month to survive because of no performance. In terms of sales, there is a large area of shop closure in Beijing, Shanghai, Chengdu and other places, because no consumers are willing to buy Weima models, resulting in dealers facing double difficulties, more and more dealers choose to withdraw from the network and turn to other car brands.

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Even though the factory production had stopped and all the terminal stores were closed, Weimar decided to raise prices. On January 16, Weima will adjust the price of W6, EX5-Z, E.5 and other models on sale, and the price will rise by 15000 yuan to 25000 yuan after comprehensive subsidy. It is understood that this adjustment involves a total of 10 model versions, of which three models have a price increase of 15000 yuan, one model has a price increase of 20000 yuan, and the remaining six models have a price increase of 25000 yuan.

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Weima cannot be sold without lowering the price, but it will be sold at a higher price. isn't this a suicide? According to the insurance figures, Weima sold 34600 vehicles in 2022, down 2.83% from the same period last year, with the highest sales of a model called Weimar E.5, which sold 20300 vehicles, up 328.96% from the same period last year. It should be noted that this is a model that focuses on the travel market, that is, online car-hailing. In fact, individual users buy very little, while sales of the other two models are pitifully small. In other words, Weimar's sales in the C-end market were already very low, but now the price has soared by 25000 yuan, how many people will pay for it?

In fact, the current Weima has begun to be "rotten". According to the financial report data released by Weima, the net losses from 2019 to 2021 are 4.145 billion yuan, 5.084 billion yuan and 8.206 billion yuan respectively, with a total loss of nearly 17.435 billion yuan. In the past three years, Weima sold 16900 vehicles, 22500 vehicles and 44200 vehicles respectively. In other words, in 2021, for example, Weimar will lose an average of about 185000 per car sold.

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To sum up, in fact, the current Weima has been terminally ill, the price increase is completely "a dead horse as a doctor". To put it simply, it has always sold cars at a loss, but a large part of its sales still come from the B-end market, and users need to think twice about buying Weima models. Now that Weima has laid off staff and reduced salaries, factories have stopped production, senior executives have left, and the property of the company and subsidiaries has been frozen one after another, how can users buy the products of such a company? In this case, instead of selling cars at a loss, it is better to raise prices to increase profit margins. Unfortunately, Weimar's abacus may not be so easy to fight.

"live, live like an animal." Shen Hui, founder, chairman and CEO of Weima Automobile, uploaded this clip from "Furong Town" to Weibo on January 12.

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