Beiqi Yinxiang or its three-year restructured employees will only be owed money regardless of whether they go or stay.

 Beiqi Yinxiang or its three-year restructured employees will only be owed money regardless of whether they go or stay.

(Photo Source: One Map Network)

The news that BAIC Yinxiang will stop production and have a holiday has added a lot of uncertainty to its previously promised restructuring expectations. On August 22, a screenshot of a chat flow from Beiqi Yinxiang showed that Beiqi Yinxiang had begun to dismiss its employees on the grounds of vacation 1-3 years waiting for reorganization.

According to the news, according to Beiqi Yinxiangs policy, employees who leave immediately will be compensated according to the national companys bankruptcy policy (no fantastic speed, specific speed, starting from the first day of employment), according to the average salary of the previous 12 months; employees who do not leave will be compensated according to the monthly salary of 1200 yuan during the holidays. New standard payment. In terms of insurance, BAIC Yinxiang proposed three plans for the employees leaving the company: company handover, self-handover and abandonment. However, regardless of which option is chosen, and where money is involved, Beiqi Yinxiang said that the company would settle its debts before Beiqi Group took over.

In addition, for employees who remain in the new company after leaving their jobs, BAIC Yinxiang said that they would re-sign the contract later, but also reminded the new company that there is no possibility of continuing to sign the contract with them. For employees who are pregnant, breast-feeding or work-related injuries, BAIC Yinxiang said that the above schemes are not applicable and that they should consider leaving or staying.

Regarding the above news, the reporter of Economic Observatory Network asked the insiders of Beiqi Yinxiang for confirmation, and some employees said that it was true. However, some employees said that they had not been notified of the suspension of work, but took turns to work, but the company was indeed laying off staff, but not all of them were dismissed. Theres almost no one on the Speed Brand side. An insider of Beiqi Yinxiang told reporters.

As for the news of the shutdown and holiday, distributors said they were not aware of it at present. I havent heard of it yet, and Im confused when I ask the sales company. A Beijing Auto Fantasy dealer in Shangqiu, Henan Province, told the Economic Observatory that in the past six months, Beijing Auto Yinxiang has always used restructuring as a reason for delaying the repayment of dealers. However, some insiders who claim to be Beiqi Yinxiang on social networking platform said, In fact, the company has decided to go bankrupt very early, just in the name of restructuring, hoping to clean up the inventory vehicles only. But the comments were not officially confirmed.

Although the above-mentioned information has not yet been released in the official calibre of Beiqi, it is an indisputable fact that Beiqi Yinxiang has difficulty in sustaining its business. According to the distributor, the Fantasy brand of Beiqi Yinxiang has stopped production since last year, resulting in no car for the distributor to sell and about 200 million yuan owed to the distributor for car purchases. Another source said that its owed to the supplier amounted to 1 billion yuan, which means that Beiqi Yinxiangs debt amounted to 1.2 billion yuan. This financial pressure has also made a footnote to the news that employees will be dismissed leaving only the money owed regardless of whether they go or stay.

Previously, under the pressure of dealersrights protection, BAIC Yinxiang had promised to announce the restructuring plan in June this year, but up to now, no definite plan has been announced. During this period, news came out that Beiqi Group will take over Yinxiang of Beiqi. After restructuring, the proportion of shares held by Beiqi Group and Chongqing Municipal Government is 37.5%, that by Hechuan Municipal Government is 14%, and that by Yinxiang Trade is 11%. The follow-up company is actually operated by Beiqi Group. At present, Beiqi Group only holds 26% shares of Beiqi Fangshui, and after reorganization, it is expected to become the largest shareholder of the company together with Chongqing Municipal Government.

He Yongping, general manager of Beiqi Fantasy Sales Company, once disclosed to distributors that the Chongqing municipal government might liquidate Beiqi Yinxiangs debts before reorganizing them. But as things stand, things dont seem to be going as smoothly as they had hoped.

Beiqi Yinxiang was founded in 2010. At that time, Beiqi Group said that it had not invested a penny and had acquired the relative controlling right of the joint venture only by brand equity. In 2014, Beiqi Yinxiang launched Beiqi Fantasy Brand. It took three years for Beiqi Yinxiang to become a black horse in the car market. By 2017, the annual sales of Beiqi Yinxiang reached a peak of 300,000 vehicles. However, with the change of the market, Beiqi Yinxiangs sales began to decline all the way and fell into a dilemma. In 2018, Beiqi Fantasy experienced a three-month high temperature vacation type of shutdown and inventory clearance. According to Beiqi Yinxiang dealers, Beiqi Fantasy has been basically shut down since the middle of last year. The previously popular restructuring plan had given BAIC Yinxiang hope of rebirth, but now it is clear that there are many more uncertainties in this hope, especially in the context of the continuing downturn in the car market.

Source: Responsible Editor of Economic Observation Network: Yang Yi_NBJ10647