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According to media reports, the internal employees of Changsha Junma Automobile sales Co., Ltd. revealed that Junma Automobile has gone bankrupt, all senior personnel have left, and the dealers are unmanaged, while the wages owed by the company's employees have not yet been implemented, and the incident of employees' salary and rights protection has occurred again. At present, the Junma Xiangyang production base has been completely dissolved.

According to the internal employee, the sales company owed employees four months of unpaid wages, involving 210 employees. "now Junma is already a shell company, in a state of disorder without management, even if employees want to leave. I don't know who to go through the formalities, so I can only hope that the government will intervene."

Junma Motor is one of many car brands of Zhongtai Group. Junma Motor was founded in June 2017. when it was founded, Junma put forward a plan to push nine new cars in three years. At that time, Zhongtai was already an independent car company with sales of more than 300000 vehicles for two consecutive years. Junma has also become a path for Zhongtai to explore and open up the brand. However, since its establishment, Junma has only launched three models: Junma S70, Junma MEET 3 and Junma SEEK 5. The speed of the new products is far less than expected. Now, under the depressed environment of the car market, Junma has also encountered great difficulties.

In early August 2019, Zhongtai Junma Motor also had more than 100 dealers protecting their rights. It is said that more than 100 Junma dealers gathered at Zhongtai Automobile headquarters in Yongkang, Zhejiang Province to safeguard their rights.

A Junma car dealer revealed that the manufacturer cut off the supply of automatic transmission cars in March because of problems in the supply of gearboxes. Since April, the factory has been in short supply of spare parts, and customers have returned to the shop for maintenance without spare parts, so they can only remove them from the test drive and replace them with their vehicles. In addition, Junma dealers also frequently encounter door-to-door complaints from customers because of vehicle quality problems, but they are basically paralyzed after sale due to insufficient supply of spare parts.

Dealers also said that the regional managers of Junma who docked with them since the Spring Festival this year have left one after another, and there has been news that Junma has stopped production. And the dealer put the money into the factory account system, so far did not mention the car, because the debt problem account system has been unable to log in, the account balance can not be seen.

The inventory pressure is great, the operation continues to lose money. A dealer told the media that the new car was raised at a 10% discount on the manufacturer's guiding price, and the final 45% discount cleared the stock, resulting in a big loss per unit, and the cost of capital could not be repaid by selling the car, and the depth of inventory in the store has been as deep as 3-4 months.

Another dealer said that the original store cost 1 million, there are still 2 million inventory, the factory's task is to sell 300 cars a year, but only a few dozen have been sold in one year.

Junma car rights protection dealers put forward their demands: Zhongtai needs to ensure the after-sales problems of Junma cars, ensure the supply of spare parts, return the account balance, fulfill the subsidies and deposits promised to dealers, and so on. Including store subsidy, store deposit, manufacturer's financial discount, sales rebate, channel rebate and so on.

It is understood that Zhongtai executives negotiated with more than 100 rights protection dealers in mid-August and promised to be responsible, giving a specific treatment plan within two weeks and conducting the second round of negotiations. Some dealers hope that manufacturers can resume production, but because Junma is all for the national five emissions, many areas have been unable to list. Some dealers have proposed to withdraw from the network, but it also means a loss of investment in building stores.

However, according to the current operating conditions of Junma Motor, it is almost abandoned. According to the official website of Junma Automobile, the production base is located in Xiangyang, with technical centers in Shanghai and Chongqing respectively.

Zhongtai Group has many sub-brands, including Zhongtai, Hanteng, Junma, Hanlong Automobile and so on. The actual shareholder behind it is the family network relationship.

According to the first half of 2019 performance report released by Zhongtai Automobile, the operating income in the first half of the year was 5.04 billion yuan, down 50.83% from the same period last year. The net profit belonging to shareholders of listed companies was 290 million yuan, compared with a profit of 300 million yuan in the same period last year. In the first half of this year, Zhongtai sold only 64900 vehicles, down 55.3% from the same period last year. The main reason for the operating loss was the decline in sales.

Since the beginning of this year, the domestic market has changed rapidly, and a number of independent brands have fallen into operational difficulties and are facing the possibility of being reshuffled. With the increasing competition, the current situation of multi-brand focus on seizing the middle and low-end market will change fundamentally. Several executives had predicted that 50 per cent of Chinese brands would go bankrupt.

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