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Has filed for bankruptcy! Another 2.5 billion of a car company was frozen.

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


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"Automotive Industry concern" checked the information from the sky. On July 17, Redding Automobile Group Co., Ltd. (hereinafter referred to as "Reading Automobile") added an equity freeze information to Sichuan Mustang Automobile Co., Ltd., freezing the equity amount of 2.574 billion yuan. The freeze period is from July 17, 2023 to July 16, 2026. The enforcement court is the people's Court of Changle County, Shandong Province.


On the same day, Reading added a piece of information about the person subject to execution, the execution target was 1.9445 million yuan, and the enforcement court was the Changle County people's Court.


Data show that Reading Automobile Group Co., Ltd. was established in October 2012, with a registered capital of 100 million yuan, and the legal representative is Wang Dejin, which is mainly engaged in the automobile manufacturing industry and is wholly owned by Bidwen Holdings Group Co., Ltd. Tianyan check risk information shows that Redding's stake in Sichuan Mustang Motor Co., Ltd. has been frozen many times. In addition, Redding also has a number of information about the person subject to execution, with a total amount of more than 100 million yuan. At the same time, there is information about the person to be executed in bad faith, the restriction on consumption order, the final capital case and so on.


Reading was founded in 2008, mainly engaged in low-speed three-wheeled, four-wheeled electric vehicles. In 2018, the country strengthened the clean-up and rectification of low-speed electric vehicles. Under this background, Reading seeks to transform its business from low-speed electric vehicles to new energy vehicles. At the beginning of 2019, Reading acquired a 100% stake in Sichuan Mustang for 1.46 billion yuan, thus obtaining production qualifications such as new energy vehicles, and then launched three small pure electric vehicles, including i3, i5 and i9, but unfortunately, due to lack of competitiveness and other reasons, the market response of I series pure electric vehicles was not good, and the sale was completely suspended after only one year on the market.


In 2021, Reading once again turned its attention to the mini-car market, and successively launched the "Reading Mango Series" model. Compared with the I series pure electric vehicles, the "Reading Mango Series" model has been recognized by a large number of consumers. After the launch of the new car, it even achieved a record monthly sales of 6056, with a cumulative sales of 30400 in 2021. But this glorious moment does not last long. Since December 2021, there has been negative news about Redding Motors, such as middle and high levels within the company applying for voluntary wage cuts to survive the crisis, suspected production suspension, upstream and downstream launching "debt recovery" against Reading cars and delaying dealer payments, and so on. This year, the sales volume of Reading cars also showed a "Waterloo", with only 7042 new cars insured, down 47.29% from a year earlier and a market share of 0.13%.

Today, five years later, Reading, which transformed from a low-speed electric car to the new energy car track, is still out. Since the beginning of 2023, Reading has been almost full of chicken feathers. 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.


Of course, the gloomy exit of Reading is not surprising. As the automobile industry enters a more intense mode of survival of the fittest, it also accelerates the elimination of weak brands with poor sales and tight capital chain to a certain extent. Under the premise that the product performance-to-price ratio and leading technology are not available, the fate of Reading may have been doomed to the end.

At present, Reading has filed for bankruptcy, after the person in charge of Redding once told the media: "We are looking for investors who hope to succeed in bankruptcy restructuring." However, Cui Dongshu, secretary general of the Federation of passengers, believes that the fact that Reading has come to this stage has a lot to do with its incomplete transformation to new energy vehicles. In addition, it is unlikely that Reading will be taken over, because Reading does not have core technology. The value of passenger car production qualification is not high and there are many problems.

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