AutoBeta(AutoBeta.net)06/22 Report--

A car brand that has faded out of people's sight has recently attracted attention because of widespread rumors that it will be delisted. It is reported that there is widespread rumor within Dongfeng Company that Dongfeng Yulong will be shut down within 1-2 years. Dongfeng Yulong produces and sells Nazhijie cars from Taiwan.

Both Dongfeng and Na Zhijie denied the news. Dongfeng responded to the media that Dongfeng Yulong is undergoing a test like the Chinese car market, and both shareholders are working for change. Na Zhijie said: at present, the company's production and sales are running normally, and the listing of new cars is also under preparation.

Although shareholders do not think that the Na Zhijie brand will withdraw from the market, under the environment of increased competitive pressure in the Chinese car market, Na Zhijie, which cannot keep up with its products and its sales have plummeted, may be difficult to sustain and face the fate of being eliminated by the market.

Dongfeng Yulong Automobile Co., Ltd., established in December 2010, is a joint venture between Dongfeng Motor Company and Taiwan Yulong Group, each holding 50% of the company. it is the first automobile manufacturing enterprise on both sides of the Taiwan Strait to be positioned as a Greater China independent brand and integrates vehicle research and development, production, sales and after-sales service. The company is located in Xiaoshan, Hangzhou. After its establishment, Dongfeng Yulong mainly produces and sells "Na Zhijie" brand cars.

In fact, Nazhijie has a higher positioning than most Chinese independent brands, just filling the price gap between independent brands and joint venture brands. In earlier years, Nazhijie also reached its peak of development, reaching a peak of 60,000 units in 2015. Due to the stagnant level of research and development, problems with product strategy and the collapse of user reputation, Na Zhijie's sales plummeted, falling to just 7056 vehicles in 2018, down 61 per cent from 2017.

The downward trend expanded sharply in 2019. In the first five months, Na Zhijie's cumulative sales were only 571 vehicles, down 88.4% from the same period last year.

Due to the decline in sales volume, performance from profit to loss, management internal friction and other problems, Dongfeng Company made the decision of "withdrawing people not divestment" in 2017, fully withdrew from the operation and management of Dongfeng Yulong, and did not participate in internal management decisions. Yulong Group, on the other hand, took over Dongfeng Yulong and increased its investment. In 2017, it announced an investment plan of 2 billion yuan to develop the mainland market and revive the Zhijie brand.

However, today's Na Zhijie, the brand, word-of-mouth has been spoiled, the product is seriously stagnant, is there any hope of revival? Some netizens said: na Zhijie used to be half dead, but now he only lives in jokes.

The "short-lived" Nazhijie 7 SUV, the first model launched by Dongfeng Yulong, went on sale in September 2011 at a price of 17.98-293000 yuan, making it one of the most expensive autonomous cars at that time. It also sold well at first with its leapfrog technology configuration and large space. In the later stage, due to the word-of-mouth crisis such as high fuel consumption and low value preservation rate, sales fell rapidly until the formal suspension of production in August last year. The Nazhijie 7 SUV has been on the market for eight years, with cumulative sales of 73302 vehicles, of which only 180 were sold in 2017 and zero in 2018.

At present, Na Zhijie has a total of 5 models on sale, namely, Big 7 MPV, you 6 SUV, U5 SUV, Na 3 and Rui 3. In view of the poor brand reputation, sales have been depressed. According to Nazhijie's official information, manufacturers have not given up their plans to launch new cars, and a seven-seat SUV called Nazhijie URX will be launched in the third quarter of this year, boosting brand sales.

Na Zhijie is a brand overwhelmed by quality and word of mouth, and jokes related to Na Zhijie are still circulating on the Internet. Over the past year, Na Zhijie did not have many product topics, but an official statement went viral. The reason is that a video about Na Zhijie's products released by a self-media company has caused a reaction, the details of which have been explained in an official statement.

Some media reports also pointed out that at present, the production of Hangzhou Xiaoshan Dongfeng Yulong plant has almost come to a standstill, with a monthly output of about 100 vehicles and a significant reduction in personnel, from 3000 at its peak to about 1000 today. In addition, nearly half of the dealers shown on the official website have withdrawn from the network, retaining only after-sales service functions.

Due to high fuel consumption, frequent failures and low value preservation rate, Na Zhijie has been compiled into various jokes by netizens to spread on the Internet, and is considered to be a brand that even second-hand car dealers dare not accept. In such an unfavorable situation, is there any hope for this Greater China independent brand? Dongfeng Yulong is shut down again, and monthly sales are only more than a hundred, but I'm afraid the rumors will eventually come true.

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