That's true. In 2020, Zotye Automobile, which once sold more than 300,000 vehicles a year, also encountered a lot of trouble. Its "Zotye Department" stopped production one after another and fell into scandals such as bankruptcy reorganization and bankruptcy liquidation.
Following Zotye, Ma Jun, Hanteng and Hanlong, Zotye New Energy Co., Ltd., a second-tier wholly-owned subsidiary of Zotye, also received a civil ruling issued by Zhejiang Yongkang Court, and was applied for bankruptcy liquidation by creditors Hangzhou Tiecheng Information Technology Co., Ltd. and Jinhu (China) Tire Sales Co., Ltd. on the grounds that it could not pay off its due debts and its assets were insufficient to pay off all its debts.
According to the contents of the announcement, Zotye New Energy will become an important source of profit for the company if it can be successfully converted into a reorganization procedure in the future; On the contrary, the company will lose control of Zotye New Energy, and Zotye New Energy will no longer be included in the scope of the company's consolidated statements.
Tragedy or Zotye tragedy!
In addition to the above, Hangzhou Jieneng Power Co., Ltd., Hangzhou Yiwei Automobile Industry Co., Ltd. and Zhejiang Zhongtai Automobile Sales Co., Ltd., wholly-owned third-tier subsidiaries of Zotye Automobile, were all ruled bankrupt and liquidated by Yongkang court.
It's not groundless Zotye used to be famous for imitating other models, but it still lacked core technical support in essence. With the rationality after impulsive and passionate consumption, the sales volume of Zotye Auto has gradually fallen into a state of double decline in product reputation and sales volume. Moreover, Zotye has limitations, because it can't launch a model that meets the national six emissions, so it can't be sold in most areas.
Looking back over the past two years, many car companies have gradually gone bankrupt.
On August 6th this year, Lifan Group announced that its controlling shareholder, chongqing lifan Holdings Co., Ltd., applied for bankruptcy reorganization to the Fifth Intermediate People's Court of Chongqing on the grounds that it could not pay off its debts due and its assets were insufficient to pay off all its debts. Jiangsu Lindsay, who once said that he would "contract" media people, also went bankrupt because of the break of the capital chain and the collective salary of employees.
In addition, FAW Li Xia, Changfeng Cheetah and other car companies struggling on the edge are obviously "chilled" when hearing this news. We will continue to pay attention to the future fate. (Text/Lyme; Audit/orphan marks outside the dust)
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.