Chinanews client, Beijing, September 22 (Zhang Xu) In 2020, traditional car companies will have a hard time.

Previously, "Bao Shitai" (Zhongtai Automobile) was applied for reorganization, and then "National Car" Xiali was sold for one yuan.

  A dollar can't buy it and you can't buy it at a loss, but you can buy a car company.

What happened to the "National Car"?

One dollar sale, Xiali bids farewell to making cars

  On September 17, *ST Xiali (FAW Xiali) issued 15 announcements in a row to announce the restructuring plan.

  According to the announcement, *ST Xiali intends to sell the equivalent of all current assets and liabilities at 1 yuan to FAW.

The latest market value of *ST Xiali is 6.6 billion yuan. At the same time, *ST Xiali purchases and injects new assets from China Iron and Steel, Iron and Steel, etc., and the controlling shareholder and main business of the listed company will change.

FAW Xiali's restructuring plan.

  After this transaction, FAW Xiali will officially bid farewell to the vehicle manufacturing and sales business, and its main business direction will be changed to rail transit-oriented material supply chain management and rail operation and maintenance technical services, as well as engineering material production and manufacturing such as railway construction. Integrated service business.

  In view of the poor overall operating conditions of the assets to be sold, after negotiation by all parties and with reference to the estimated value of the assets to be sold evaluated and recorded by the State-owned Assets Supervision and Administration Commission of the State Council, the transaction price of the assets to be sold by FAW Xiali was determined to be 1 yuan.

  Why is FAW Xiali going to be sold?

From national car to huge loss of tens of billions

  The financial report shows that from 2012 to 2019, FAW Xiali has lost non-net profits for 8 consecutive years.

  Starting from June 2019, FAW Xiali's vehicle production has stagnated. In 2019, the vehicle production volume was 1,186, a year-on-year decline of 81.4%; the sales volume was 4,023, a year-on-year decline of 93.69%.

The production stagnation led to a sharp decline in the scale of FAW Xiali's main business in 2019. FAW Xiali suffered a loss of 1.481 billion yuan for the year.

  But as one of the earliest car brands in my country, Xiali can be said to have created the true history of Chinese family cars.

  In September 1986, the first Xiali introduced and produced in the form of "all bulk parts" rolled off the assembly line.

In 1990, the first Xiali sedan rolled off the assembly line, priced at 100,000 yuan.

In that era, people were proud of being able to buy Xiali, and Xiali once became a symbol of wealth and status.

The red old Xiali after the restoration of the "Bus Time" series of video columns.

  Xiali in its heyday became part of the national memory.

In the 1990s, the rows of red Xiali taxis were a unique sight on the street.

  FAW Xiali statistics show that in 1996, more than 80% of domestic taxis were Xiali models; in 2004, Xiali’s output exceeded 1 million, becoming the first national car brand with an output of over one million; at the end of 2005, Xiali became the number one domestic car brand. A car company with a sales volume of over 200,000 vehicles; in 2011, FAW Xiali’s annual sales volume reached 253,000 vehicles with a revenue of 9.954 billion yuan.

  In addition, Xiali has also ranked first in domestic auto sales for 18 consecutive years. Such a record is unprecedented.

  However, due to the fact that Xiali models have not undergone major changes, coupled with changes in market conditions and consumer demand, Xiali began to lose ground.

  After 2000, Xiali’s ownership of the taxi market dropped sharply, failing to keep his “half of the country”.

With the continuous reduction of tariffs on imported cars and the rapid rise of joint-venture vehicles, the prices of some models with high configuration and good quality have also been continuously reduced, and Xiali has gradually moved away from the sight of consumers.

  2012 was a turning point for Xiali.

From 2012 to 2015, the annual sales of FAW Xiali were 185,000, 135,000, 72,000 and 64,000, respectively; in 2016, it dropped to 37,000, a year-on-year decrease of 43.3%.

Also in the past few years, independent brands such as Chery and Geely have come from behind, while Xiali's market sales have continued to fall.

Data map.

  In order to solve the financial problem, FAW Xiali transferred its internal combustion engine manufacturing branch, parts related to the daily production and manufacturing of powertrain, FAW Huali, FAW Toyota and other assets one after another in exchange for funds to avoid being delisted.

One of the most important assets, FAW Toyota, was also transferred to FAW by FAW Xiali at a price of 2.56 billion yuan and 2.923 billion yuan respectively.

  "Smashing the pot and selling iron" also failed to prevent FAW Xiali from falling into the quagmire of losses.

From 2012 to the first half of 2020, FAW Xiali has deducted non-net profits for eight and a half consecutive years, with losses of more than 1 billion yuan in six years, with a total loss of more than 10 billion yuan.

Cooperated with Byton and Bojun to survive, but stepped on thunder twice

  In the process of self-rescue, Xiali tried to cooperate with new car-making companies, but twice stepped on thunder.

  In 2018, FAW Xiali issued an announcement stating that, in order to implement the spirit of relevant policies, realize rational allocation of resources, and clean up loss-making legal persons, it will transfer 100% of its wholly-owned subsidiary Tianjin FAW Huali Automobile to Nanjing Zhixing (the parent company of Byton Automobile). The transfer price is 1 yuan. After the equity transfer is completed, Byton Auto will officially take over FAW Huali.

  As of the end of June that year, FAW Huali’s assessed price was -960 million yuan.

FAW Huali has almost no actual business operations and is in a state of insolvency. The only valuable asset is passenger car production qualifications, which is what Nanjing Zhixing needs most.

In exchange, Nanjing Zhixing needs to assume FAW Huali’s 800 million yuan in debt and 54.62 million yuan in employee salaries.

Screenshot of Byton Motors official website.

  However, Nanjing Zhixing failed to fulfill the contract on time.

In June 2020, Xiali had to speak publicly, asking Byton for money.

The statement shows that in May 2020, Nanjing Zhixing, Huali Company, Xiali Operating Company and others signed an agreement in Tianjin.

The agreement stipulates that Nanjing Zhixing shall pay FAW Xiali the remaining balance of 235 million yuan before June 30, 2020.

  Xiali did not wait for the life-saving money, but waited for the bad news that Byton Motors was about to go bankrupt.

  At the end of June, Byton Motors officially announced that it would suspend its business in China from July 1st for a period of six months. The North American and German offices have initiated bankruptcy protection applications in accordance with local laws.

During the shutdown period, most of the employees in China will be on standby, and only a small number of employees will stay on duty to maintain the company's most basic functions. Follow-up will be notified according to the specific situation.

  In fact, Xiali, who was in desperate need of funds, had bet on both sides, and the other object of the bet was Bo County Automobile.

  In October 2019, FAW Xiali and Bojun Automobile established a joint venture company Tianjin Bojun.

FAW Xiali has invested 505 million yuan in assets and liabilities related to the vehicle-related land, plant, equipment, etc., and its shareholding ratio in the joint venture company is 19.9%; Bojun Automobile invested 2.034 billion yuan in cash, holding 80.1% of the joint venture company Equity.

  If the funds can be put in place, it will be a timely rain for FAW Xiali, and Bojun Automobile can also obtain the qualification for vehicle production.

However, Xiali suffered a "critical attack" again.

  Bojun Automobile released its first mass-produced model at the Shanghai Auto Show in 2019, and plans to complete mass production of new cars by the end of 2019 and start delivery in early 2020.

However, Bojun's mass-produced models did not appear as scheduled, and the capital chain problems followed one after another.

  In January 2020, Bojun Automobile was exposed by the supplier of payment default.

In February, the salary payment of all employees was postponed, and the company no longer paid social insurance for employees, and the employees themselves resolved it.

Bo County Open Letter.

  On June 13, Huang Ximing, the founder of Bojun Auto, issued an open letter stating: “Bojun Auto is currently experiencing serious operating difficulties. The company has now decided to reposition the company’s business model, strive to create positive cash flow, and fully protect employees and supply. The interests of business owners, shareholders and related parties."

  Bojun’s car building suffered a dilemma, and FAW Xiali was also deeply affected.

According to an announcement issued by FAW Xiali at the beginning of the year, as of January 12, Bojun had only paid 14 million yuan to the joint venture, and the remaining capital injection had not been paid.

  After all, Xiali Automobile made the wrong payment, and paid twice.

Some people in the industry said that FAW Xiali wanted to revitalize its assets by building new forces and import fresh blood to carry out self-rescue, but they did not expect to develop to this point.

  A generation of national cars will only live in people's memory from now on.