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on the verge of death or destruction! A new force has been frozen for 120 million

2024-03-04 Update From: AutoBeta autobeta NAV: AutoBeta > News >


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"Automotive Industry concern" from the sky to check the information, Reading Automobile Group Co., Ltd. (hereinafter referred to as "Reading Automobile") added an equity freeze information, equity enforcement enterprise is Sichuan Mustang Automobile Co., Ltd., freezing equity amount of 120 million RMB, freeze period from May 29, 2023 to May 28, 2026, the enforcement court is the Kuiwen District people's Court of Weifang City, Shandong Province.


Reading Automotive Group Co., Ltd. was established in October 2012, with a registered and paid-up capital of 100 million yuan, the legal representative is Wang Dejin, and the company was formerly known as "Shandong Maillard Energy Power Technology Co., Ltd." the controlling shareholder is Bidwen holding Group Co., Ltd. As for Sichuan Mustang Automobile Co., Ltd., which was established in January 2011, the registered capital and paid-in capital of the enterprise are both 2.6 billion RMB, and the legal representative is Wang Dejin. The company was formerly known as "Sichuan Automobile Industry Co., Ltd." is an enterprise mainly engaged in automobile manufacturing. The company is jointly owned by Reading Automotive Group Co., Ltd. and Bidwin Holdings Group Co., Ltd., with a shareholding ratio of 99.54% and 0.46%, respectively.


Since it was revealed at the beginning of the year that the capital chain was broken, bankruptcy filed, founder Li Guoxin settled overseas, and now there has been a spate of negative news such as being listed as a dishonest executor and freezing equity, Redding's current situation is in jeopardy.

Public data show that Reading Motors has been frequently involved in lawsuits in the past year. As of May 29, 2023, Redding Motor was involved in a total of 21 court hearings, with a total of 21 cases from June 1 to June 21, 2023. There were 51 legal proceedings involving a total amount of 224 million yuan, of which the amount of Redding Motor as the plaintiff was only 129600 yuan. In addition, Reading Motor, as the person subject to execution, was executed with a total amount of 119.608272 million yuan. In addition, according to the China referee Writing website, Redding has been ordered to freeze funds many times so far because of a dispute over the sale and purchase contract, of which the total amount of Redding executed in November 2022 has exceeded 12 million yuan.


"seeing him rise from a tall building, see him entertain guests, see his building collapse." This is the most appropriate sentence to describe Reading cars. Reading car was formerly Weifang Bidwen Electric vehicle Co., Ltd., which started with electric bicycles. In 2008, Reading car was out of the car manufacturing industry with low-speed electric vehicles. At that time, the sales of Reading cars skyrocketed because of its low price and no need to be licensed. Once became the "old man happy" low-speed electric car market leader. However, due to the influence of the policy of low-speed electric cars, Reading was transferred to the new energy car track, and the good days of Reading came to an abrupt end.


In April 2018 and January 2019, Reading Motor acquired Shaanxi Qinxing Automobile Co., Ltd. and Sichuan Mustang Automobile Co., Ltd., of which Reading Motor spent 1.45 billion yuan to acquire Sichuan Mustang Automobile Co., Ltd. After completing the acquisition and obtaining the production qualification, Reading immediately put into production and launched three i3, i5 and i9 series I pure electric vehicles in a very fast way. Unfortunately, Reading cars, which had no experience in passenger car production and sales, suffered a lot. New energy vehicles died not long after the transformation. Data show that only 3387 Reading cars were sold in 2019. At the same time, due to the lack of competitiveness of vehicles and other reasons, I-series pure electric cars were completely suspended in one year.

In 2021, Reading repositioned the new car and turned to the mini car market, and then launched mango, mango Pro and other models one after another. with the advantage of high performance-to-price ratio of less than 30, 000 yuan, the mango series was favored by the market, with a record monthly sales of 6056 vehicles, with a cumulative sales volume of 30400 in 2021, making it into the top 15 on the list of new energy cars. But at that time, this market segment was already a red sea, especially Wuling Hongguang mini one after another, and Reading sales soon began to decline off a cliff.


At the same time, since the end of 2021, Reading has also been caught in a whirlpool of negative news. It has been revealed that the middle and senior levels of the company have applied to take the initiative to reduce wages to survive the crisis, suspected to stop production, upstream and downstream have launched "debt recovery" against Reading cars and failed to send cars in arrears to dealers, and so on. In this year, the number of new Redding cars was only 7042, down 47.29% from the same period last year, and the market share was 0.13%. Of these, 7024 were sold in Reading Mango and 16 in Reading i3.

At the end of the day, the gloomy exit of Reading is not surprising. Under the premise that the product is cost-effective and the leading technology is not available, it may have already doomed the fate of Reading. At present, the competition in the new energy vehicle market is particularly fierce, and the industry has entered the knockout mode of survival of the fittest. Can Reading, which is struggling on the line of life and death, make a comeback? Now it seems that it is obviously even more difficult.

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