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Heavily in debt! Reading cars are carried out continuously.

2024-02-24 Update From: AutoBeta autobeta NAV: AutoBeta > News >


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According to Heavenly Eye, Reading Automobile Group Co., Ltd. has added three pieces of information about the person subject to execution for two consecutive days, with execution targets of 86192024.0 yuan, 251099 yuan and 130000 yuan respectively. The enforcement courts are Weifang Intermediate people's Court and Changle County people's Court respectively.




From the risk information checked by Tianyan, we can also see that there are several pieces of information about the person subject to execution in Redding Automobile Group Co., Ltd., the total amount of which is as high as 213 million yuan. At the same time, the company also has information such as the restriction of consumption order, the person being executed in breach of trust and the final capital case.


Data show that Reading Automobile Group Co., Ltd. was established in October 2012, the legal representative is Wang Dejin, the registered capital and paid-in capital are both 100 million yuan, is mainly engaged in the automobile manufacturing enterprise, 100% controlled by Bidwen Holdings Group Co., Ltd.


In fact, Redding has been reported to have broken capital chains and enforced subsidiaries since December 2021, as well as news that founder Li Guoxin has settled overseas. Reading was founded in 2008, mainly engaged in low-speed three-wheeled, four-wheeled electric vehicles, and then due to the country to strengthen the clean-up of low-speed electric vehicles, Reading urgently needs to transform from low-speed electric vehicles to new energy vehicles. In 2018, it began to acquire Shaanxi Qinxing Automobile and Sichuan Automobile Mustang successively, and obtained the production qualification of new energy passenger cars, fuel passenger cars and passenger cars. Since then, it has launched three small pure electric vehicles, including i3, i5 and i9. However, due to poor product competitiveness and other reasons, the I series has not been favored by the market and has been completely suspended after only one year on the market. In 2021, Reading once again turned its attention to the mini-car market and launched the mango model. The low price made the series popular in the market and improved the sales of the Redding car. The total annual sales of the mango series in 2021 was 30400.


However, the good times did not last long. Since December of the same year, Reading Motors has been exposed to a financial crisis. There have been reports in the market that the middle and senior levels of Reading Motors have applied to take the initiative to cut wages to survive the crisis, stop production, and both upstream and downstream are initiating "debt recovery" against Reading cars and dealers withdrawing a large area of the net. In addition, some dealers have released a form entitled "Statistics of Dealers' arrears to National Dealers" online. According to the form, more than 30 dealers in the registration form owe more than 20 million yuan for Reading cars. At that time, Reading responded to the matter: "funds and production capacity are relatively tight this year, so the delivery of cars can only ensure key markets and key areas, which has indeed had an impact on some dealer partners." In order to get the car as soon as possible, some dealers can only choose to continue to trust Reading, and even a number of dealers have revealed to the media that under the circumstances that the car is not issued or refunded, the manufacturer still requires the dealer to continue to make money. Only if you continue to make a payment will you send the car.

Of course, under the influence of factors such as capital breakage, production suspension and large-scale withdrawal of dealers, Reading's market share was also reduced in 2022. Relevant data show that the cumulative sales of Reading cars in 2022 was 7042, down 47.29% from the same period last year. Market share is 0.13%. Since the beginning of 2023, Reading has been in an increasingly difficult situation. On May 5 this year, Reading finally could not bear it and filed for bankruptcy reorganization. However, the outcome of Reading is not surprising. Under the premise that the product is cost-effective and the leading technology is not available, it will be eliminated by the market sooner or later.


At present, the competition in the new energy market is becoming more and more fierce, and the knockout stage for car companies has been opened. Before that, the person in charge of Reading had told the media that "investors are looking for a successful bankruptcy restructuring." However, some industry insiders pointed out that the bankruptcy filing of Reading has a lot to do with the incomplete transformation to new energy vehicles. At the same time, it also said that it is unlikely that Reading will be picked up, because Reading does not have the core technology, the value of passenger car production qualifications is not high and there are many problems.

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