In addition to Weibo, there is also WeChat
Please pay attention
WeChat public account
AutoBeta
2024-11-01 Update From: AutoBeta autobeta NAV: AutoBeta > News >
Share
AutoBeta(AutoBeta.net)11/18 Report--
Recently, brilliance Automobile Group had a debt crisis and was applied to the court by its creditors for bankruptcy reorganization, becoming another independent automobile manufacturing enterprise that embarked on the road of reorganization due to poor management. Under the circumstances, there are questions about the future operation of brilliance BMW and whether the deal for BMW to increase its stake in brilliance BMW joint venture has changed.
BMW said its deal to increase its stake in brilliance, a joint venture in China, would not be affected by the debt problems of brilliance's parent, brilliance Automobile Group.
For BMW, there is no indication that the validity of the previous contract will be limited by the current situation of brilliance's parent company, and BMW's operations will not be affected by brilliance's debt, BMW said in an email.
BMW China responded that brilliance BMW Co., Ltd. and brilliance Group are independent legal entities, the current problems are only the affairs of brilliance Group, and the operation of our joint venture BMW brilliance will not be affected.
At the same time, sources close to the Liaoning government told Reuters that the authorities wanted BMW to increase its stake in the joint venture and expand local production capacity as planned.
Brilliance BMW Co., Ltd., founded in May 2003, is a joint venture between BMW Group and brilliance Automobile Group holding Co., Ltd. The business covers the production, sales and after-sales service of BMW brand cars in China. Brilliance BMW has an advanced production base in Shenyang, Liaoning Province, a branch in Beijing, and a sales and service network all over the country. The joint venture now employs about 20,000 people and has nearly 400 local suppliers, making it the largest taxpayer in Shenyang for 14 years in a row.
In 2018, BMW formally signed an agreement with brilliance, and BMW's plan to increase its stake in brilliance to 75% was settled.
According to the agreement, BMW will acquire a stake in brilliance BMW, raising its stake to 75%, with a consideration of 3.6 billion euros, and will complete the equity adjustment in 2022. At the same time, BMW Group and brilliance Automobile Group jointly announced that the shareholders will extend the joint venture agreement of brilliance BMW until 2040. In addition, the BMW Group will increase its investment in brilliance by 3 billion euros for the reconstruction and expansion of its production base in Shenyang in the next few years.
Even with the huge profit contribution of brilliance BMW, brilliance Automobile Group can't make it. Due to poor management, brilliance Automobile Group defaulted on its debt and even embarked on the road of bankruptcy and restructuring.
On November 13, the National Enterprise bankruptcy and reorganization Information Network disclosed that Gezhi Automotive Technology Co., Ltd. applied to the Intermediate people's Court of Shenyang City, Liaoning Province for the reorganization of brilliance Automobile Group holding Co., Ltd., case number (2020) Liao 01 Breaking Shen 27, the former is an automobile stamping die developer.
On November 16, brilliance Automobile Group issued an announcement confirming that brilliance Motor has defaulted on its debt totaling 6.5 billion yuan and overdue interest totaling 144 million yuan. Due to the shortage of funds in the enterprise, the examination and approval of the renewal credit has not been completed, resulting in non-repayment. At the same time, brilliance's debt default had an impact on the production and operation of brilliance, which led to the deterioration of its financial situation and greatly affected its ability to repay its debts.
Brilliance Automobile Group has four listed companies, namely brilliance China, Golden Cup Automobile, Shenhua Holdings and Xinchen Power, of which brilliance China holds a 50% stake in brilliance BMW and is the most profitable.
Statistics show that brilliance's independent business has been losing money in recent years, losing 540 million yuan, 600 million yuan, 860 million yuan, 420 million yuan and 1.064 billion yuan respectively from 2015 to 2019, with a total loss of nearly 3.5 billion yuan. In contrast, BMW brilliance, a joint venture brand, has contributed 3.923 billion yuan, 3.993 billion yuan, 5.233 billion yuan, 6.245 billion yuan and 7.626 billion yuan to brilliance in the past five years, with a cumulative profit of 26.9 billion yuan.
With the change of the shareholding of brilliance BMW, BMW has the absolute say in the joint venture, brilliance Automobile Group's days of relying on brilliance BMW "blood transfusion" may not be sustainable, and its revenue from brilliance BMW will be greatly shrunk. The pressure of survival will also be further highlighted.
Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat
Views: 0
*The comments in the above article only represent the author's personal views and do not represent the views and positions of this website. If you have more insights, please feel free to contribute and share.
© 2024 AutoBeta.Net Tiger Media Company. All rights reserved.