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Huatai Automobile predicament: can it survive the new year when it is exposed that wages are in arrears, production is suspended, and sales are falsified?

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

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Since Huatai Automobile employees revealed that the company owed wages online, many problems of Huatai Automobile have gradually surfaced.

In January 2019, a "media help letter" from Huatai Automobile employees spread on the social platform, claiming to be an old employee inside Huatai Automobile. At present, the company has not paid its employees in accordance with the contract for four consecutive months because of operational difficulties, and it is hoped that the company will be able to pay unpaid wages and lead a normal life near the end of the New year.

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According to the letter, Huatai Automobile Group Co., Ltd. has not paid its salary on the 20th of each month as stipulated in the Labor contract since February 2018. On the people's Daily local leaders' message board, from April 2018 to January 2019, a total of six "Huatai employees" left messages to the leaders of Beijing and Tianjin, asking for help on the issue of unpaid wages of Huatai Motor.

The provident fund and social security are not paid in accordance with the wage standard, but in accordance with the minimum wage in Beijing. This incident has seriously affected the daily life of employees, causing employees to fall into tremendous financial pressure.

But Huatai never responded positively to the issue of arrears of wages, and a former employee of Huatai confirmed the fact of arrears of wages to reporters. Huatai is said to have defaulted at least four months on the salaries of its grass-roots employees and nine months on its middle managers.

In fact, as early as 2018, Huatai Motor thought that the issue of unpaid wages was taken to court by its employees. In August last year, Huatai Automobile asked its employees to travel to the Rongcheng base or leave automatically, which is actually a disguised way for Huatai to lay off staff, which is also an aspect of Huatai Motors.

According to Tianyan data, Huatai Automobile Group has a total of 7994 risks, of which 72 are its own risks, 7817 are surrounding risks, and 105are early warning reminders, including failing to fulfill their legal obligations by the court, being sued for labor disputes, being subject to administrative punishment, and being publicized as a company breaking promises by the Supreme people's Court.

The enterprise legal person of Huatai Automobile Group changes frequently, and the data show that Zhang Xiugen is the legal person of the company, which was later handed over to his wife and brother Miao Xiaolong, but it has been included in the untrustworthy list, that is to say, Zhang Xiugen is still the actual controller of Huatai Motors. Huatai Automobile is actually a family business.

Zhang Xiugen first appeared on the Forbes China Rich list in 2005 and ranked 137th in 2018 with a fortune of 13.8 billion yuan. with such a large fortune, why did he fail to pay his wages?

Huatai Automobile has four automobile production bases in Tianjin, Shandong, Ordos, Inner Mongolia and Dandong, Liaoning. The production base in Tianjin was shut down in 2018, and the Ordos factory has grown more than half a meter of barren grass. Today, all four car production bases have stopped production.

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In addition, Huatai Automobile also has a production base of Huaud transmission in Jiangyin. In terms of scale, Huatai Automobile has a production base that is not inferior to other autonomous car companies. But in fact, according to Huatai insiders, the Huaud transmission production base has never really been put into production since the establishment of the factory in 2014 and the introduction of equipment in 2015.

On September 28, 2018, Huatai Motor and dawning shares were delivered, that is to say, Huatai Motor has two major production qualifications: new energy passenger vehicles and new energy commercial vehicles. For other independent car companies, being able to have the production qualification of new energy passenger vehicles and new energy commercial vehicles at the same time is just the right turning point for Huatai Automobile.

Zhang Xiugen has said that the acquisition of dawning shares is aimed at its axle technology, will invest more energy in hub motors and four-wheel drive axles, and will launch a four-wheel drive electric logistics vehicle in 2019. The model will be produced at Dandong and Ordos bases and will use Ningde era batteries. However, until now, Huatai's new products have not appeared in the public eye.

Production at Huatai was completely shut down, but the Santa Fe EV sold 16370 vehicles in 2018 and even 2048 in January and February 2019. When the factory is out of production, it is doubtful that it can still build and sell cars.

In fact, as early as 2010, Huatai reported sales of 81435 vehicles to the China Automobile Association, an increase of 30560 vehicles over the same period last year. However, Huatai actually had 15950 license plates in 2010, an increase of only 1280 over 2009. Because of serious misrepresentation, the China Automobile Association once showed Huatai's sales as zero in the production and Marketing Express in 2011.

In addition, Huatai Automobile Co., Ltd. produced 2148 vehicles in 2018 and 11147 in 2017, according to the announcement on the average fuel consumption of domestic passenger car enterprises and the scores of new energy vehicles released by the website of the Ministry of Industry and Information Technology in April this year. According to the requirements of the Ministry of Industry and Information Technology, all passenger car enterprises that have obtained access to passenger car production enterprises of the Ministry of Industry and Information Technology and obtained compulsory product certification need to report data and calculate fuel consumption points, but there are no Erdos Huatai and Tianjin Huatai in the public list. That means Huatai is likely to produce only 2148 cars in 2018.

Cheng Xiaodong, an automobile analyst at the National Development and Reform Commission, said publicly that Huatai Automobile has always been a niche brand, developed well in the past two years, and was once recognized in the market competition. It is revealed that the problem of unpaid wages and sales fraud has a lot to do with performance, and previous shareholder changes and personnel adjustments may be omens.

2019 is not only a new year, but also a special year, which is a great challenge for automobile enterprises, especially independent brands. Automobile manufacturers need to constantly develop cars that meet the needs of the market and the development of the times. but also in the sales channel. Sales services and other continuous efforts.

Huatai Automobile, as a minority brand, once won the attention of consumers with models such as Santa Fe and Traka, but now it is besieged on all sides and does not know whether it will survive the new year.

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