Burn Up 10 Billion? Well Known Car Companies Are Completely Cool: Their Business Licenses Have Been Revoked

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On May 17, lvchi Automotive Technology Group Co., Ltd. was revoked its business license by Shanghai Qingpu District market supervision and administration, because the company did not open business for more than six months without justifiable reasons after its establishment or closed down for more than six consecutive months after its opening**

In fact, as early as 2020, lvchi automobile was exposed to default on employees' salaries, and the company has been basically in a "paralyzed state".

Known as financing 10 billion

It was once considered to be the most stable auto enterprise of new energy

According to public information, lvchi automobile was founded in August 2016, and its founder and CEO is Wang Xiangyin. It is also the first batch of new car manufacturing forces in the field of new energy vehicles in China.

It is understood that Wang Xiangyin is a celebrity in the automotive industry. He has a doctoral degree in vehicle engineering, and once served as the deputy general manager of BAIC Futian Automobile Co., Ltd. and the president of Huatai Automobile Group.

In 2016, lvchi automobile group was established in cooperation with investors such as China Energy host and China energy capital. Because the founder is a professional and has rich industry experience, lvchi's starting point is higher than that of many other automobile enterprises, and it is also very optimistic. It was once considered to be the most stable automobile enterprise of new energy.

After the establishment of the company, lvchi has always been very low-key and rarely made a sound. As for entering the public's vision again, there is a rumor of "Wang Xiangyin's resignation". After the launch of the large-scale electric coupe in 2018, the pure green coupe disappeared from the market.

Founder run away

Burn up 10 billion? Still not mass produced

In April 2019, the senior management of lvchi automobile changed. The former CEO Wang Xiangyin submitted his resignation to the board of directors due to physical reasons. Ren Yahui, the former executive vice president of lvchi automobile group, took over Wang Xiangyin as the CEO of lvchi automobile.

The new CEO was born in manufacturing management. At that time, lvchi was also reported that he would quickly promote the mass production process of new cars under the leadership of Ren Yahui. In terms of model planning, lvchi has successively released three concept cars: Uranus, Venus and lvchi M500. Its first mass-produced model M500 was once considered to be released at the Guangzhou auto show in the year when the new CEO took office, but so far, lvchi has not mass-produced any model.

Lvchi automobile once said that after the first round, round B and round C financing totaling about 10 billion yuan, it will be listed from 2021 to 2022. However, it backfired. In 2020, lvchi automobile was exposed due to problems such as the capital chain. The company has basically been in a "paralyzed state", the employees' salaries have been defaulted, and the first mass production car promised before has also disappeared.

In 2019, the new energy subsidy policy declined sharply, and a large number of new energy enterprises fell into the crisis of unpaid shutdown. In that year, even Li Xiang, the ideal car, was also known as the "worst man in 2019". Similarly, lvchi didn't survive.

Under the background of capital rupture caused by long-term losses, lvchi automobile "sold itself for survival" in March 2020 and transferred 60% of its equity to Henan State Investment Enterprise Management Co., Ltd. (hereinafter referred to as "Henan state investment"), which became the actual controlling party, and the company name was changed from lvchi automobile technology (Shanghai) Co., Ltd. to lvchi Automobile Technology Group Co., Ltd.

However, after state-owned assets took over, lvchi car did not have much sound and action. The news released to the outside world is still salary arrears and the company is paralyzed. Under the pressure of internal and external rumors, CEO Ren Yahui once said in the company group, "even if I have no money, I have no way but to ask the investor."

The bankruptcy news of lvchi came from Henan Guotou and others. In April 2021, Shanghai Qingpu District People's court announced that it accepted the bankruptcy liquidation case of lvchi Automobile Technology Group Co., Ltd.

Since this year

Many new car making forces fell

Li Bin of Weilai automobile once said that without 20 billion yuan, don't build cars.

In December 2020, the 5.1 billion Changjiang automobile invested by Li Ka Shing was put into bankruptcy liquidation.

According to the statistics of it orange, the list of enterprises that died in new energy vehicle manufacturing in 2020 also includes Bojun automobile, which has experienced six rounds of financing and finally has no choice to go bankrupt and restructure, and Baiteng automobile, which burned up 8.4 billion and did not build a mass-produced vehicle

Since this year, with "Wei Xiaoli" has successfully realized the normalization of gross profit margin, but the new forces of car manufacturing have accelerated the bankruptcy. One month before and after that, the news of bankruptcy and auction of three new car making enterprises came out successively.

Beijing baowo, once known as "bbba", made new progress in bankruptcy at the end of April; Hanteng automobile, once known as the "Pearl of Shangrao", also heard the news of bankruptcy and reorganization at almost the same time; The sailin car, which burned up $5.6 billion but only built a "elderly Scooter", will be auctioned off on May 30.

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