National God car gold cup War: sales decline and layoffs

category:Finance
 National God car gold cup War: sales decline and layoffs


A source told the daily economic news: the above layoff plan will be officially launched at the end of December this year, but will not be released to the public. In this regard, brilliance Renaults relevant person in charge said: no matter the company or the employees, there is no relevant information.

Renault Chinas relevant person in charge also only told reporters: brilliance Renault is in the stage of transformation and will continue to adjust its enterprise structure. The company is committed to building a more professional, responsive and flexible organizational structure to ensure long-term sustainable development.

Photo source: Brilliance Renault official website

It is worth noting that some media reports said that on November 30, brilliance automobiles existing creditors held a meeting of bondholders, which adopted the establishment of a regular communication mechanism between the two sides to fulfill their credit obligations, promised not to evade or cancel debts, formulate a reasonable debt repayment plan, disclose the current financial and asset situation of the company, and stop the disposal of assets. However, the creditors were not satisfied with the proposal For brilliance, the participants did not give effective response to the core issues.

Brilliance Automotive related responsible person to respond to reporters said: brilliance restructuring work has not the latest progress, there is no information to be disclosed.

As of the end of December 1, Brilliance China (01114. HK) shares fell 1.304% to close at HK $6.810/share, with a market value of HK $34.358 billion.

The dilemma under the brilliance storm

As a matter of fact, as early as July this year, brilliance Renault attracted attention due to layoffs. According to the above media reports, the layoff plan implemented by brilliance Renault in July this year involves more than 400 employees, accounting for about 15% of the total number of employees (about 3000).

A Huachen Renault voluntary termination compensation circulated on the Internet shows that the resigned employees will enjoy the n + 1 subsidy. If the working years in the company are less than the number of months away from retirement, n is equal to the working years; if the working years in the company are greater than the months before retirement, n is equal to the number of months from retirement. In addition, the optimized employees receive employment subsidies for two months wages, so the overall scheme is equivalent to n + 3. To this content, brilliance Renault as of press release did not respond.

According to qixinbao data, Huachen Renault had 3766 social security personnel in 2018. In 2019, the number will drop to 3043, a decrease of 723.

Photo source: qixinbao

According to public information, brilliance Renault has a registered capital of US $1.704 billion, which is a joint venture jointly established by Renault group and brilliance motor in December 2017. Among them, Brilliance Automotive accounted for 51%, Renault group accounted for 49%.

The war of national God car

As the leading model of brilliance Renault, Jinbei bus has the reputation of national God car.

In July 1992, Jinbei Auto was listed on the Shanghai Stock Exchange; in October of the same year, brilliance company, with Jinbei bus as its main asset, was successfully listed on the New York Stock Exchange. It was oversubscribed 85 times on Wall Street and raised 72 million US dollars.

Since 1996, Shenyang Jinbei has been making great progress all the way, and has rapidly become the leader of domestic light bus market. The annual sales volume has increased by 50%, and has set an industry record of 30% return on investment. The sales volume of Jinbei bus has been increasing year by year, reaching 60000 by 2000, accounting for 60% of the light bus market.

Photo source: visual China

But since then, the golden cup began to show signs of downturn. By 2004, the sales volume of golden cup sea lion was 61000, a year-on-year decrease of 18%. It lost the national light bus sales champion which has been maintained for five years.

The real turning point was in 2010. This year, the sales volume of Jinbei Automobile was 100000, and then it began to decline sharply. By 2016, the annual sales volume of Jinbei Automobile was only 23.17% of that in 2010. The weak sales directly led to the net profit loss of Jinbei Automobile, whose net profit decreased from 36 million yuan in 2015 to 208 million yuan.

Subsequently, brilliance launched a rescue plan for the golden cup. In December 2017, Brilliance China transferred 49% equity of Shenyang Brilliance Jinbei to Renault at a price of 1 yuan to establish brilliance Renault.

According to the data disclosed by Brilliance China, the annual sales volume of brilliance Renault has been declining year by year since its establishment. Among them, the sales volume in 2018 was 43000, with a year-on-year decrease of nearly 30%; in 2019, the sales volume was 40200, with a decrease rate of 6.5%; in the first half of this year, the sales volume was about 11700 vehicles, with a year-on-year decrease of 42%.

In the light passenger market, the performance of golden cup has been excellent in the past, but it has been seriously impacted under the requirements of laws and regulations, resulting in the rapid shrinkage of its market advantage and problems in cash flow. Cui Dongshu, Secretary General of the national passenger vehicle market information association, believes that brilliance Renaults commercial vehicle sector has not been effectively developed, has not caught up with this years commercial vehicle dividend, and has not grasped the market opportunity in the development process of its own brand.

Cui Dongshu believes that brilliance Renault had a good foundation, and Jinbei Automobile (light passenger) was once in the leading position. However, in the follow-up, we did not strengthen independent technology research and development to ensure the continuous improvement of product strength, but passively responded to the laws and regulations and fierce competition, and finally had todays dilemma.

On November 24, brilliance Renaults first LCV, golden cup sea lion king, was officially launched with a starting price of 84900 yuan. The new car is considered to be brilliance Renaults latest attempt to break the game.

CEO of brilliance Renault gold cup

In addition, according to German auto weekly, Renault Group CEO Luca de Mayo said recently that Renault is carrying out a large-scale restructuring in three stages. The first stage will be completed in early 2023, and Renault will return to the Chinese market in the future. For this statement, daily economic news reporter in Renault China has been confirmed. Reporter Pei Jianru editor sun Lei Zhao Yun Du Hengfeng proofread he Xiaotao source: daily economic news editor in charge: Yang Bin_ NF4368

In addition, according to German auto weekly, Renault Group CEO Luca de Mayo said recently that Renault is carrying out a large-scale restructuring in three stages. The first stage will be completed in early 2023, and Renault will return to the Chinese market in the future. For this statement, daily economic news reporter in Renault China has been confirmed.

Reporter Pei Jianru

Editor: Sun Lei, Zhao Yun, Du Hengfeng

Proofread by he Xiaotao