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Recently, BAIC New Energy vehicles filed a recall plan with the State Administration of Supervision and Administration, saying that a total of 1389 Weiwang 407EV series electric vans produced from June 11, 2018 to November 30, 2018 will be recalled from July 13, 2019.

The reason for the recall is that Weiwang 407EV series vehicles may overheat inside the battery pack during use, and there is a safety accident that causes a fire out of control. BAIC New Energy will test the recalled vehicles and replace qualified power battery packs free of charge to eliminate safety risks.

Prior to this, BAIC New Energy vehicles have been repeatedly exposed in the store system failure, and even occurred spontaneous combustion incidents, Shenzhen Development and Reform Commission has issued a suspension of operation of all Weiwang 407EV models in Shenzhen.

At the World Congress of New Energy vehicles in 2019, the State Administration of Market Supervision and Administration released data showing that as of May 2019, a total of 123000 new energy vehicles had been recalled in China, 50 per cent of which was due to the failure of the three-point power system. the core difference between new energy vehicles and traditional fuel vehicles is electricity, including electric drive, battery and electric control.

According to the data released by BAIC New Energy, its annual sales of new energy vehicles reached 158000 in December 2018, but on January 30, 2018, BAIC New Energy announced a recall of 69400 defective vehicles, accounting for about half of its annual sales. Involving defective vehicles, including E, EV and EX models, BAIC has not only the largest number of new energy recalls, but also the largest number of recalls.

According to public data, BAIC New Energy, founded in 2009, is the first batch of new energy automobile companies to pilot employee stock ownership reform in state-owned enterprises, initiated and controlled by Beijing Automobile Group Co., Ltd. BAIC's main force was originally in traditional models, after BAIC New Energy exceeded expectations in 2017 to complete round B financing of 11.1 billion yuan, August 8, 2018, through asset restructuring, backdoor S*ST vanguard listed.

From May 2017 to March 2019, the total amount of subsidies for hundreds of new energy vehicle enterprises exceeded 62.4 billion, according to data published by the Ministry of Industry and Information Technology. Among them, in 2018 alone, BAIC New Energy received new energy subsidies plus government subsidies totaling 5.37 billion yuan. Since January 2019, BAIC has once again received about 2 billion of the national new energy subsidy.

It has received generous subsidy funds from the government for a long time, but on September 27, 2018, BAIC Blue Valley A shares suffered two setbacks on the first day of listing, receiving two temporary suspension notices. The opening price was 14.66 and the closing price was 9.5, down 35%.

From the various reasons for the recall of new energy vehicles, the safety of pure electric vehicles is worrying. Up to now, BAIC new energy vehicles have been developed for almost 10 years, much earlier than many domestic independent car companies, still the halo of new energy, access to high government subsidy funds, has played a positive role in the development of the industry. However, according to the current situation, the development of BAIC seems to be somewhat unsatisfactory, and the recall of cars due to defects is also quite disadvantageous to the brand.

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