Youth Automobile Shizuishan Published Billions of Funds to Run Out of the Waste End Project to Accuse the Blame

category:Finance
 Youth Automobile Shizuishan Published Billions of Funds to Run Out of the Waste End Project to Accuse the Blame


This is the first domino brand officially collapsed by Pang Youqing, chairman of the Youth Automobile Board, after nearly two months of fermentation of the Nanyang Hydrogen Engine incident. The previous May 23, a water hydrogen engine officially offline, the Secretary of the Municipal Party Committee point praise news caused heated discussion on the Internet. The protagonist of the incident is Pang Youth and his youth car. As soon as the news was sent out, it aroused a heated discussion, which raised doubts about the development of youth automobiles.

The total investment of Nanyang project planning is 8.316 billion yuan, of which 4 billion yuan is planned for Nanyang Government Platform. It is worth noting that before Nanyang, Pang Youth had carried out similar projects with different regional governments eight times in 13 years since 2005, and all of them failed. One of these included the Shizuishan automobile project, which involved compulsory execution. With the start of the recovery of uncompleted projects, Pang Youth and his youth car will face a real crisis.

But youth cars may just be the beginning. Chinas economy is entering a transitional era. In the early years, when local governments introduced the automobile industry in order to develop the economy, they often did everything possible to give money to land and resources, which has become the secret of many automobile companies. The same is true of Huatai Automobile, a typical case reported by the media before. Nowadays, with the economic transformation and upgrading and the improvement of accountability mechanism, the rotten projects in the early years are erupting centrally.

The mid-game of investment

According to people familiar with the case, the project originated in 2010, when Shizuishan, famous for anthracite, chose Zhejiang Youth Automobile in order to seize the opportunity of the western development and promote the industrial upgrading and transformation of Shizuishan. Similar to Nanyangs heroic words, the youth automobile industry at that time drew a huge blueprint for Shizuishans automobile industry, and said that it would invest 26.709 billion yuan to build a project with an annual output of 210,000 heavy trucks, 100,000 Lotus Cars and 510,000 large-scale automobile engines. In addition, there are also transmission, iron casting and other automotive parts processing, automotive glass and other projects.

In order to express support for the project, the local government of Shizuishan not only formally signed the Investment Contract with Youth Automobile in September 2010, but also signed many contracts with both sides of Youth Automobile, and matched many coal mines with Youth Automobile. For this reason, a national horse science and technology unit of Shizuishan was established by joint venture. Co., Ltd. But since then, there has been no progress in the construction project of Youth Automobile in Shizuishan, and the previous investment has been in a bad state.

According to relevant reports, youth automobiles have even evacuated 116.2 billion yuan of registered capital of National Ma Technologies twice and cashed in 1 billion yuan through coal. In 2013, the local police in Shizuishan also set up a special task force to pursue the evasion of funds. If it hadnt been for the Nanyang Hydrogen Engine Incident, the local government would not have recovered the results of the Tail-cutting projects that had cooperated with youth automobiles so quickly, some insiders said.

It is understood that, in addition to Shizuishan, over ten years, young automobiles have cooperated with eight local governments, including Jinan, Lianyungang, Liupanshui, Hangzhou Xiaoshan, Haining, Taian and Ordos. In the initial stage of cooperation, the total investment of both sides exceeded hundreds of millions of yuan, and the results were mostly rotten.

Among them, the Jinan Youth Car Project, with a total investment of about 6.2 billion yuan, went to court like Shizuishan. At the same time, in order to avoid the loss of state-owned assets, Jinan High-tech Zone demanded compensation of 530 million yuan for youth automobiles; Lianyungang Youth Car Project, with a total investment of 2.7 billion yuan, was recovered by the Lianyungang Municipal Government of Jiangsu due to the failure of cooperation. The project of Liupanshui Heavy Truck, which is planned to invest about 250,000 yuan, was withdrawn by the government from the land enclosure campaign or resource enclosure campaign under the preferential policies of the park. The Haining project, which invested 4 billion yuan, was eventually scattered and the land was recovered.

The project of Shandong Taian Lotus Car with a total planned investment of 10 billion yuan has been shut down for five years since 2014, while the Management Committee of Taian High-tech Zone has recovered 400 mu of industrial land of Taian Youth Automobile Co., Ltd. and intends to sell the company in packages. The Hangzhou Youth Lotus Car Project with a planned investment of 3.6 billion yuan also went bankrupt in 2017. Liquidation; the Saab production plan in Ordos, similar to that in Shizuishan, failed, while the governments 1.3 billion-ton coal target was sold.

Accusation for bad projects

In the initial stage of cooperation, the total investment of both sides is over hundreds of millions of yuan. They started 14 years ago and lasted 8 years. But the results are mostly similar. How do local governments deal with them? Did it end up without any illness, or did it continue to be pursued like Shizuishan for several years? On August 7, a reporter from the Economic Observer called the investment promotion departments of the above-mentioned local governments, but the answers were similar.

Among them, Jiangsu Lianyungang Merchants Bureau said that this matter has a long retrospective period in the past ten years, even if it needs to be reported layer by layer to find information such as contract documents at that time. Our leaders have already changed two waves. To resume the business, we need to find the leaders who handled the project before, and they are retired or not in office. The other side said that for the Lianyungang government, there was no actual loss, and eventually recovered the land previously granted to youth cars.

However, a staff member of Liupanshui Merchants Bureau in Guizhou Province who has been on duty for only a few years said that the leaders involved in the incident had retired and he had heard about the youth automobile project in Liupanshui, but did not understand the process and results. He said that after the experience of youth automobiles, the approval of foreign projects by the Liupanshui government has become more stringent, especially in the past two years, these enterprises will be more rigorous integrity assessment and review.

It is reported that after investing in Liupanshui, Youth Automobile has acquired a total recoverable reserve of no less than 1.5 billion tons of coal mine resources. Later on July 24, Pang Youth said at the media communication meeting that the youth car had withdrawn from the construction of Liupanshui base, but the Liupanshui government did not hold the youth car accountable. At the same time, it also said that Liupanshui, a coal-based industry for a long time, was still looking for transformation and welcomed the investment of automobile industry upstream and downstream, but the official did not mention whether coal mines would still be provided in return.

In February 2019, due to a long period of idleness, Bozhou announced the recovery of two land use rights acquired by Yaxia Group, which is also the first case of land recycling in Bozhou city. In Inner Mongolia, the local government and Huatai Automobile are also in court. In addition, Jia Yuetings land in Huzhou is also facing the fate of recovery. It can be said that with the negative growth of Chinas automotive market and the local cleanup of zombie enterprises, more and more investment projects will be accountable and recovered in the automotive industry. The future investment of new automobile enterprises is likely to rot a lot. One analyst pointed out. At present, when introducing enterprises, many places will still adopt the method of resource-for-investment, especially some resource-based cities facing difficulties in transformation. Some local governments that are in urgent need of transformation are not strict enough in project review itself, such as the Nanyang Hydrogen Engine incident. However, the project ended abruptly because of heated public opinion and doubts. If not for the attention of the public caused by the reports of the local government media, the local funds involved in the project are likely to drift again. Source of this article: Responsible Editor of Economic Observation Network: Zhang Mei_NF2100

At present, when introducing enterprises, many places will still adopt the method of resource-for-investment, especially some resource-based cities facing difficulties in transformation. Some local governments that are in urgent need of transformation are not strict enough in project review itself, such as the Nanyang Hydrogen Engine incident. However, the project ended abruptly because of heated public opinion and doubts. If not for the attention of the public caused by the reports of the local government media, the local funds involved in the project are likely to drift again.