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Huatai Automobile production Base has completely stopped production, with wages owed as high as 7 million.

2024-09-08 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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It has been 19 years since Huatai Automobile was founded, and it has once become a leading car company in China, and over the past year, there has been a lot of negative news about the company. recently, it has been reported that Huatai Automobile's three major production bases have successively stopped production and arrears of wages. the total amount of wages owed has reached 7 million.

Shandong Rongcheng Factory is the starting point of Huatai Automobile. As the founder of SUV in China, Huatai Automobile was quite bright at the beginning of its birth. Data show that the Rongcheng base has stamping production lines, welding production lines, painting production lines, body interior assembly lines, vehicle assembly lines, car inspection lines, etc., mainly producing Santa Fe, Politics and new energy vehicles.

Now, the whole factory is silent and the roar of machines can not be heard. A number of frames are placed on the open space the size of a football field, which, judging from the dust, has been stored for at least two years.

In the Huatai Automobile 4S store near the factory, there is no customer in the sales hall, and there are no cars to sell, advertising leaflets are still in 2017, and the tools in the repair shop are all rusty.

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According to employees, after the factory stopped production, he got a basic salary of 2000 yuan a month and had no work to do. He had not been paid for two months. According to a rough calculation, the amount of wages owed by Rongcheng Huatai is about 500000 yuan.

As the new energy production base of Huatai Company, Tianjin Huatai has been given an important task.

According to data, the Tianjin base has imported more than 2000 sets of cutting-edge equipment from Germany, the United States and other countries, many of which have reached the world's leading level.

Now, however, not only are the doors of the plant closed, but thousands of licensed new energy vehicles are parked in the factory area, with dust all over the car, and some of them can't even see the license plate number.

According to reports, in the second half of 2018, the factory was in a state of "semi-stop production". Due to wage arrears since October 2018, Tianjin Huatai has seen a large number of employees leave. It is understood that the factory has more than 1000 workers in 2017, and now it is not possible to pay a basic salary of 2050 yuan, but can only reduce pressure through layoffs. In addition, Tianjin Huatai Security confirmed that the factory has been without power and water since June, and the security company was evacuated on June 19. After the security staff withdrew, they will be guarded by non-leaving employees.

Another factory of Huatai Company is located in Ordos. As an important western production base of Huatai Automobile, it is mainly responsible for vehicle production and power platform production.

On June 20, the reporter came to the factory. However, in such a huge factory area, only two security guards were on duty. The entire plant is empty, the doors of all production workshops are locked, the windows are closed and sealed, some for 2016 and some for 2018, while hundreds of scrapped Huatai cars are parked in the parking lot on the side.

Internal staff confirmed that the production workshop has been shut down since June 2018, and more than 900 people have left since last year, but now there are less than 100 people left, mainly administrative staff and workshop leaders.

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At that time, however, Huatai Motor promised to obtain 6000 mu of land, 1 billion yuan in government loans and two coal mines at a low price of 10, 000 yuan per mu on the grounds that Traka and Santa Fe were produced locally. Huatai Automobile promises to reach 300000 vehicle production capacity and annual output value of 60 billion yuan in 2015. However, information shows that Huatai Automobile Ordos base produced 17600 vehicles in 2017, with an output value of 1.35 billion yuan.

It is worth noting that as a controlling subsidiary of Ouyide, the Jiangyin Huaoude transmission project has also failed. According to media reports, the plant has not really been put into production since it was built in 2014 and the equipment came into operation in 2015.

A visit to Wuhan 4S store found that the original 4S store has become an ordinary car maintenance shop.

At the 2017 auto show, Huatai Motors publicly announced that its sales would reach 200000 in 2018 and 500000 in 2020. Huatai has nearly 30 new cars on the market in the next three years, but the data show that Huatai sold only 71200 cars in 2015 and 73000 in 2016, an increase of only 2.5 percent over 2015. Sales in 2017 surged 81.64 percent to 132600, with sales exceeding 100000 for the first time. But it fell another 9.0% in 2018, and sales fell to 120700. According to this calculation, Huatai Automobile has sold a total of 397500 cars in four years, with an average annual sales of only 99400. It is a far cry from the expectation of more than 500000 vehicles a year.

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In January 2018, Huatai announced sales of 1316 vehicles, but in December 2017, it sold 21000 vehicles, and the latter sold 15 times as many as the former. As early as in 2011, the CAA did not accept Huatai's reported data because of the long-term and serious falsification of Huatai's sales data, but in order to maintain the integrity of the data, its sales figures will be replaced by "0". From 2008 to April 2011, Huatai actually had 45000 brands in the Ministry of Public Security, but it reported to the China Automobile Association as high as 183000, a difference of more than three times. Huatai car dealers bluntly said that Huatai car sales are not good, the data are seriously flooded, and many dealers began to stop picking up cars in 2018.

It has been 19 years since Huatai Automobile was founded, and now it is suffering from a shutdown of production, a sharp drop in sales, staff turnover, wage arrears, plummeting debt prices, and auto finance fines. All signs and facts show that the car dream of Zhang Xiugen and his son seems to be on the verge of a dead end.

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