As we all know, with the continuous development of China's economy, now more and more people have the ability to buy a car, according to the data of relevant departments in China, in the first three quarters of 2021, the number of motor vehicles in China is as high as 390 million, and the proportion of cars is as high as 76%, which is 297 million, which is very large.
In addition, the number of cities with more than 1 million cars is also increasing, according to relevant information, there are currently 76 cities with more than 1 million cars in China, an increase of 7 compared with the same period in 2020, of which 34 cities with more than 2 million cars and 18 cities with more than 3 million are enough to prove the enthusiasm of our people for cars.
And this enthusiasm also makes the development of the automotive industry more and more hot, related auto companies have also been with the rapid development, to Great Wall Motors as an example, according to its financial report data, in the first three quarters of 2021, Great Wall Motors achieved revenue of 90.797 billion yuan, an increase of 46.11% year-on-year, while the net profit reached 4.645 billion yuan, an increase of 91.13% year-on-year, very amazing.
At the same time, in addition to Great Wall Motors, auto companies such as Changan Automobile, BYD, and GUANGZHOU Automobile Group have performed quite well in 2021, but it is worth mentioning that at the moment when major enterprises are constantly developing, there is an automobile company that is deeply involved in bankruptcy reorganization, and this enterprise is Brilliance Auto.
Deeply mired in bankruptcy reorganization
In fact, as early as the end of 2020, Brilliance Auto, which owes hundreds of billions of yuan in debt, has been applied for bankruptcy reorganization, but until now Brilliance Auto has not been reorganized, as early as September 2021, Brilliance Auto's reorganization plan has been postponed once, and in early December 2021, Brilliance Auto's bankruptcy reorganization plan has been postponed again, this extension has been until June 2022, as a veteran automobile company, Brilliance Auto is now facing a situation that is inevitably regrettable.
There may be many people who are not very familiar with this name, in fact, Brilliance Auto is quite large, as a key state-owned enterprise in Liaoning Province, once Brilliance Auto is the main force of China's auto industry independent brands, but also on the list of China's top 500 enterprises, it can be said that brilliance auto before the scale is quite large.
And its self-created auto brands "Zhonghua" and "Jinbei" in the automotive market performance can also be remarkable, especially the Chinese car, as China's high-end independent brand vehicles, the market share was once as high as the first, so why would such a large-scale automobile company fall into today's bankruptcy reorganization?
The first U.S.-listed state-owned enterprise
In fact, to know the reason, you need to understand the past of Brilliance Automobile, in fact, the earliest Brilliance Automobile brand appeared, just to let Jinbei Automobile go public, around the 90s, Shenyang, which had two automobile manufacturing plants at that time, decided to establish a third automobile manufacturing enterprise, and after merging more than 50 enterprises, Jinbei Automobile was born.
But for Shenyang, which already has two major automobile manufacturing plants, the emergence of Jinbei Automobile can be described as "tasteless, abandoned", almost can not come up with more spare support, in order to make Jinbei Automobile can be developed, Jinbei Automobile can only choose to sell equity to raise funds, and finally by Hainan Huayin International Trust and a person named Yangrong joint venture set up Jinbei Bus, accounting for 60% of Jinbei, 25% of Yangrong, 15% of Huayin International Trust.
At the beginning of its establishment, Jinbei Bus became a hit in the market, and the bus it produced quickly became the sales champion at that time, and Yang Rong, who had acquired the shares in the hands of Huayin International Trust, chose to establish Brilliance China in order to let Jinbei be listed in the United States, through the transfer of equity, stock exchange and other operations, Brilliance China, which held 51% of the equity of Jinbei Automobile, successfully listed in the United States, becoming the first Chinese state-owned enterprise listed in the United States.
Abandon your own technology
After the listing, Brilliance Auto continued to produce Jinbei buses while creating the car brand "Zhonghua", and at the same time, in 2002, Brilliance China and BMW Group reached a cooperation and launched a joint venture brand "BMW Brilliance", which is considered to have reached the peak of the enterprise, but what many people did not expect was that Brilliance China showed full decline after this, and car sales fell sharply
In order to reverse the situation, Brilliance China chose to bet on foreign technology, and Qi Yumin, then chairman of Brilliance China, chose to give up the financial rights and sales rights in his hands to the BMW Group in order to obtain the technical support of bmw group, which stabilized the situation to a certain extent, but also allowed bmw group to control the sales system of BMW Brilliance, laying the groundwork for bmw's acquisition of Brilliance Automobile in the future.
Later, after the release of the joint venture share ratio policy, BMW Brilliance changed the shareholding ratio of Brilliance China and BMW Group from 50%:50% to 25%:75%, and the transfer of a large amount of equity was only for the investment of the first phase of the BMW Group project, although this further increased the sales of BMW Brilliance, but correspondingly, Brilliance Auto's own brands "Zhonghua" and "Jinbei" have declined, leaving people speechless.
It can be said that Brilliance Automobile will fall into today's bankruptcy reorganization situation, and it has a lot to do with giving up its own technology research and development, superstitious foreign technology, as an automobile company, do not want to think about how to improve their own technical level, only want to rely on others to eliminate the technology, the final failure is also reasonable, do not know whether brilliance automobile can learn lessons after the success of bankruptcy reorganization in the future and reproduce the glory of the past? We'll see.