Huatai Automobile three bases completely stop production of Ordos Plant unfulfilled output value promise to face relocation-Shanghai Metals Market

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Huatai Automobile three bases completely stop production of Ordos Plant unfulfilled output value promise to face relocation

Translation 12:53:16PM Jun 24, 2019 Source:Yangtze River Business Daily
The content below was translated by Tencent automatically for reference.

SMM News: Huatai Motor, which has been established for more than 19 years, as the controlling shareholder of dawning shares (600303.SH), can be described as a double whammy and besieged on all sides.

In the face of a shutdown, a sharp drop in sales, a loss of employees, unpaid wages, plummeting debt prices, auto finance penalties, signs and facts show that Zhang Xiugen and his son's car dream seems to be on the verge of a dead end.

From June 16 to 22, the reporter visited Huatai Automobile Tianjin, Rongcheng and Ordos three major production bases and found that all factories were depressed and silent.

"We have not paid wages since January 2019," a worker at Tianjin Huatai Automobile body Manufacturing Co., Ltd. told reporters on June 18. According to reporters, Huatai Automobile's factory in Rongcheng, Shandong Province, has long been closed for three years. It once had more than 1,000 employees, but now there are only less than 100 people left. Not only that, Ordos Huatai base, which is mainly responsible for vehicle production and power platform production, has also stopped production and left empty buildings.

Facts show that Huatai Automobile's three major production bases have been shut down and unpaid wages, a rough estimate of the total amount of arrears of wages has been 7 million yuan.

On June 21, a just left Huatai Automobile Group middle level told, "the current automotive industry as a whole is not good, Huatai Automobile is very difficult to tide over the difficulties."

Rongcheng Huatai suspended production for three years, Tianjin Huatai became an "empty city"

Shandong Rongcheng is the starting point of Huatai. As the founder of SUV in China, Huatai Automobile was quite bright at the beginning of its birth. However, the factory, which was completed in 2000, looked depressed 19 years later.

On June 19, 2019, the reporter came to Rongcheng Huatai, located in Rongcheng Guanhai Middle Road, Weihai City, Shandong Province. The whole factory was silent and could not hear the roar of the machine. On the open space the size of a football field, there are a number of frames, which have been stored for at least two years from the point of view of covering up dust.

According to the data, Rongcheng Base has stamping production line, welding production line, painting production line, body interior decoration assembly line, vehicle assembly line, automobile testing line and so on. It mainly produces Santa Fe, Pollig and new energy vehicles.

The reporter learned that the factory area once had more than a thousand employees. However, at the end of the day at noon, there were only a few dozen employees in the whole workshop, who walked out of the workshop in twos and threes in grey overalls and then dined nearby.

In Huatai 4S, which is close to the factory, there are no customers in the sales hall, there are no cars to sell, the advertising brochure is still in 2017, and the tools in the repair workshop are rusty.

It is worth noting that in the sales hall space, only four pickup trucks are parked. Rongcheng Huatai employees introduced, this is to take a stake in dawning shares, Rongcheng Huatai sales.

At noon, an old worker in his 40s said that Rong Cheng Huatai had not produced for three years and began to have a holiday on June 1 this year. Originally, there were 500 employees, but now there are less than 100 people left. "since June, the canteen is no longer open. Employees can only take care of their own meals."

According to reports, after the suspension of production, workers get a basic salary of 2000 yuan a month, do not work at work, has not been paid for 2 months. According to a rough calculation, the amount of wages owed by Rongcheng Huatai is about $500000.

In addition, as a new energy production base of Huatai automobile, Tianjin Huatai has undoubtedly been entrusted with an important task.

According to public information, Tianjin Base has introduced more than 2000 sets of cutting-edge equipment from Italy, Germany, the United States and other countries, many of which have reached the leading level in the world.

However, the Huatai Automobile production Base, located in Tianjin Binhai New area, is not only closed, but also parked in the open space with thousands of licensed new energy vehicles. Judging from the dust, it was parked for at least half a year.

On the morning of June 18, a person familiar with the matter told reporters that since the second half of 2018, the factory has been in a "semi-stop production" state, and a large number of employees in Tianjin Huatai have left their jobs because of arrears of wages from October 2018. It is understood that in 2017, the factory had more than 1000 workers, and at present, when it is unable to pay a basic salary of 2050 yuan a month, it can only be reduced through formal layoffs. Some people told reporters: "it will be cut from 200 to 30."

In addition, Tianjin Huatai security confirmed to the reporter that the factory has been without power and water since June, and all the security companies were withdrawn on June 19. After the withdrawal of security, they will be guarded by unvacated employees.

Xuanxuan travel in name only, thousands of new energy vehicles shut down

In fact, Huatai car has been struggling, in Tianjin market also launched Xuan travel, but also only a flash in the pan.

Speaking of Huatai, according to local drivers in Tianjin, in 2017, in order to promote new energy vehicles, Huatai specially developed Xuanxuan travel in Tianjin to take a taxi to Didi.

Xuan travel official website shows that "Xuan trip" is a collection of Internet travel, vehicle dynamic supervision in one of the Internet travel app developed by Tianjin Letu Zhihang Technology Co., Ltd. In the self-introduction, Xuan trip expressed as "China's first all-SUV travel special car platform", the use of vehicles for Huatai new energy XEV260.

Tianjin driver introduction, Huatai Xuan travel said that full-time drivers, with a basic salary, car insurance, performance requirements. "complete the prescribed number of orders and make a pro rata commission on the remaining orders." The driver said that Xuan travel unlimited, full-time a month about 4000 yuan, the terms are still quite attractive.

However, Xuan travel from birth to disappear, almost only a year.

June 18, the reporter in Tianjin urban area and Binhai New area many times use Xuan travel call taxi, did not show the surrounding car, the reporter dialed Xuan travel customer service also showed that no one answered.

In fact, as early as August 2018, some drivers said that Xuan did not pay his wages on time, and questioned whether his new energy vehicles would be withdrawn.

Accordingly, Xuan travel official website of the latest developments are only as of September 20, 2018. And Tianjin Huatai factory area, nearly a thousand white SUV ash parked in the parking lot, became a "car grave."

Ordos base faces relocation or demolition

As an important western production base of Huatai Automobile, Ordos Huatai has the largest factory area in all bases, built in the urban area, mainly responsible for vehicle production and power platform production.

On June 20, the reporter came to Wulan Mulun Street in Kangbashi District, Ordos City, Inner Mongolia Autonomous region. The whole Ordos Huatai was divided into three regions: administrative building, vehicle production plant, and Ouyide Power Group. Each of the three areas has its own gate and house number, and it takes about 20 minutes to cross all the factory areas. However, it is such a huge factory area that only two security guards are on duty.

The reporter walked straight into the Ordos Huatai vehicle production plant, the whole factory area is empty, all the production workshop doors are locked, the windows are closed and sealed, some show for 2016, some for 2018. The concrete wall of the tower, with signs hanging, was dilapidated and the cement was scattered all over the floor.

Cross a street, across the street is Ouyide Power Group. It is claimed to be "the largest and most advanced clean steam and diesel powertrain base in China", but due to the eyes, more than 2. 3% of them are wasteland, weeds are half human height, and rabbits and pheasants are running around in them.

In the Eide Group, the door of the new Eide transmission building is locked, through the glass door you can see that the workshop is as neat as new, and there are machines on the ground that have not yet been unpacked. In one side of the parking lot, there are hundreds of scrapped Huatai cars.

According to the data, Huatai Automobile was determined to be the leader of China's advanced powertrain at that time, boasting that "the only two core technologies in China are automatic transmission and diesel engine."

The propaganda board of Ouyide Power Group is covered with Huatai car propaganda posters, and indicates that Huatai Baolig introduces Ouyide diesel engine technology and adopts the core technology of Europe's top transmission.

Internal employees in Ordos confirmed to reporters that since June 2018, all production workshops have been shut down. Since last year, more than 900 people have left their jobs, and now there are fewer than 100 people left, mainly administrators and workshop leaders.

"No pay has been paid since December 2018." Ordos Huatai employees say it will be good to be able to do it by the end of the year.

Today, Ordos Huatai is extremely desolate. At that time, however, Huatai promised to obtain 6000 mu of land in Ordos, 1 billion yuan in government loans and two coal mines at a low price of 10, 000 yuan / mu, citing the local production of Traka and Santa Fe.

Huatai Automobile promised to reach 300000 vehicle production capacity and an annual output value of 60 billion yuan in 2015. However, the information disclosed by the Ordos Economic and Information Commission shows that in 2017, Huatai Automobile Ordos Base produced 17600 vehicles with an output value of 1.35 billion yuan, and all Huatai Automobile's promises were lost, and the dream of top power in China was even more in vain.

It is worth noting that, as a holding subsidiary of ou Yide, Jiangyin Hua Ode transmission project also failed. According to media reports, the plant has not really been put into production since the plant was built in 2014 and the equipment entered in 2015.

According to Ordos Huatai insiders, according to the urban development plan of Ordos City, all industries will move out of the city center, and the Huatai base is the only industrial production base still in the urban area, so it is inevitable for Huatai base to move out or be dismantled.

15 times difference in sales volume suspected of serious water injection

Wages in arrears stop production, Huatai sales are not optimistic.

Reporters visited Wuhan 4S shop found that the original 4S store has become an ordinary car maintenance shop. "Huatai owes the dealer money and the car has been mortgaged." Wuhan Huatai car sales staff admitted that Huatai car sales are not good, all the cars have been withdrawn to Xinzhou before and after the Chinese New year.

The person in charge of the Huatai car dealer told reporters that Xinzhou Huatai car was rented out and recovered after the old car, and specially stressed that "it is best not to buy."

The reporter telephoned Huatai automobile to inquire about other 4S stores in Hubei, but no one answered it all the time.

In fact, Huatai car sales data has been difficult to match its boast of "Haikou." At the 2017 auto show, Huatai publicly announced that "we will strive to sell 200000 vehicles in 2018 and more than 500000 in 2020. In the next three years, Huatai will have nearly 30 new cars on the market one after another."

But data show that Huatai sold only 71200 vehicles in 2015 and 73000 in 2016, up only 2.5% from 2015. In 2017, sales soared 81. 64% to 132600, with sales exceeding 100000 for the first time. But it fell another 9.0% in 2018, with sales falling to 120700 vehicles.

According to this calculation, Huatai Automobile has sold a total of 397500 vehicles in four years, with an average annual sales of only 99400 vehicles. It is a far cry from the expected number of more than 500000 vehicles a year.

But even such sales figures are still "hydrated" in the eyes of industry insiders. In January 2018, Huatai reported sales of 1316 vehicles, but in December 2017 it sold 21000 vehicles, which is 15 times that of the former. As early as 2011, due to Huatai car sales data for a long time serious fraud, CAAC once did not accept Huatai car reported data, but in order to maintain the integrity of the data, its sales figures will be replaced by "0".

From 2008 to April 2011, the actual number of Huatai cars in the Ministry of Public Security was 45000, but the number of cars reported to the CAA was as high as 183000, a difference of more than three times.

Huatai car dealer said bluntly that Huatai car sales are not good, data serious water injection, many dealers began to stop lifting cars in 2018.

During office hours on June 21, the Huatai Automobile Base factory in Ordos was empty.

Key Words:  Car  battery  Huatai car  base stop production 

Huatai Automobile three bases completely stop production of Ordos Plant unfulfilled output value promise to face relocation

Translation 12:53:16PM Jun 24, 2019 Source:Yangtze River Business Daily
The content below was translated by Tencent automatically for reference.

SMM News: Huatai Motor, which has been established for more than 19 years, as the controlling shareholder of dawning shares (600303.SH), can be described as a double whammy and besieged on all sides.

In the face of a shutdown, a sharp drop in sales, a loss of employees, unpaid wages, plummeting debt prices, auto finance penalties, signs and facts show that Zhang Xiugen and his son's car dream seems to be on the verge of a dead end.

From June 16 to 22, the reporter visited Huatai Automobile Tianjin, Rongcheng and Ordos three major production bases and found that all factories were depressed and silent.

"We have not paid wages since January 2019," a worker at Tianjin Huatai Automobile body Manufacturing Co., Ltd. told reporters on June 18. According to reporters, Huatai Automobile's factory in Rongcheng, Shandong Province, has long been closed for three years. It once had more than 1,000 employees, but now there are only less than 100 people left. Not only that, Ordos Huatai base, which is mainly responsible for vehicle production and power platform production, has also stopped production and left empty buildings.

Facts show that Huatai Automobile's three major production bases have been shut down and unpaid wages, a rough estimate of the total amount of arrears of wages has been 7 million yuan.

On June 21, a just left Huatai Automobile Group middle level told, "the current automotive industry as a whole is not good, Huatai Automobile is very difficult to tide over the difficulties."

Rongcheng Huatai suspended production for three years, Tianjin Huatai became an "empty city"

Shandong Rongcheng is the starting point of Huatai. As the founder of SUV in China, Huatai Automobile was quite bright at the beginning of its birth. However, the factory, which was completed in 2000, looked depressed 19 years later.

On June 19, 2019, the reporter came to Rongcheng Huatai, located in Rongcheng Guanhai Middle Road, Weihai City, Shandong Province. The whole factory was silent and could not hear the roar of the machine. On the open space the size of a football field, there are a number of frames, which have been stored for at least two years from the point of view of covering up dust.

According to the data, Rongcheng Base has stamping production line, welding production line, painting production line, body interior decoration assembly line, vehicle assembly line, automobile testing line and so on. It mainly produces Santa Fe, Pollig and new energy vehicles.

The reporter learned that the factory area once had more than a thousand employees. However, at the end of the day at noon, there were only a few dozen employees in the whole workshop, who walked out of the workshop in twos and threes in grey overalls and then dined nearby.

In Huatai 4S, which is close to the factory, there are no customers in the sales hall, there are no cars to sell, the advertising brochure is still in 2017, and the tools in the repair workshop are rusty.

It is worth noting that in the sales hall space, only four pickup trucks are parked. Rongcheng Huatai employees introduced, this is to take a stake in dawning shares, Rongcheng Huatai sales.

At noon, an old worker in his 40s said that Rong Cheng Huatai had not produced for three years and began to have a holiday on June 1 this year. Originally, there were 500 employees, but now there are less than 100 people left. "since June, the canteen is no longer open. Employees can only take care of their own meals."

According to reports, after the suspension of production, workers get a basic salary of 2000 yuan a month, do not work at work, has not been paid for 2 months. According to a rough calculation, the amount of wages owed by Rongcheng Huatai is about $500000.

In addition, as a new energy production base of Huatai automobile, Tianjin Huatai has undoubtedly been entrusted with an important task.

According to public information, Tianjin Base has introduced more than 2000 sets of cutting-edge equipment from Italy, Germany, the United States and other countries, many of which have reached the leading level in the world.

However, the Huatai Automobile production Base, located in Tianjin Binhai New area, is not only closed, but also parked in the open space with thousands of licensed new energy vehicles. Judging from the dust, it was parked for at least half a year.

On the morning of June 18, a person familiar with the matter told reporters that since the second half of 2018, the factory has been in a "semi-stop production" state, and a large number of employees in Tianjin Huatai have left their jobs because of arrears of wages from October 2018. It is understood that in 2017, the factory had more than 1000 workers, and at present, when it is unable to pay a basic salary of 2050 yuan a month, it can only be reduced through formal layoffs. Some people told reporters: "it will be cut from 200 to 30."

In addition, Tianjin Huatai security confirmed to the reporter that the factory has been without power and water since June, and all the security companies were withdrawn on June 19. After the withdrawal of security, they will be guarded by unvacated employees.

Xuanxuan travel in name only, thousands of new energy vehicles shut down

In fact, Huatai car has been struggling, in Tianjin market also launched Xuan travel, but also only a flash in the pan.

Speaking of Huatai, according to local drivers in Tianjin, in 2017, in order to promote new energy vehicles, Huatai specially developed Xuanxuan travel in Tianjin to take a taxi to Didi.

Xuan travel official website shows that "Xuan trip" is a collection of Internet travel, vehicle dynamic supervision in one of the Internet travel app developed by Tianjin Letu Zhihang Technology Co., Ltd. In the self-introduction, Xuan trip expressed as "China's first all-SUV travel special car platform", the use of vehicles for Huatai new energy XEV260.

Tianjin driver introduction, Huatai Xuan travel said that full-time drivers, with a basic salary, car insurance, performance requirements. "complete the prescribed number of orders and make a pro rata commission on the remaining orders." The driver said that Xuan travel unlimited, full-time a month about 4000 yuan, the terms are still quite attractive.

However, Xuan travel from birth to disappear, almost only a year.

June 18, the reporter in Tianjin urban area and Binhai New area many times use Xuan travel call taxi, did not show the surrounding car, the reporter dialed Xuan travel customer service also showed that no one answered.

In fact, as early as August 2018, some drivers said that Xuan did not pay his wages on time, and questioned whether his new energy vehicles would be withdrawn.

Accordingly, Xuan travel official website of the latest developments are only as of September 20, 2018. And Tianjin Huatai factory area, nearly a thousand white SUV ash parked in the parking lot, became a "car grave."

Ordos base faces relocation or demolition

As an important western production base of Huatai Automobile, Ordos Huatai has the largest factory area in all bases, built in the urban area, mainly responsible for vehicle production and power platform production.

On June 20, the reporter came to Wulan Mulun Street in Kangbashi District, Ordos City, Inner Mongolia Autonomous region. The whole Ordos Huatai was divided into three regions: administrative building, vehicle production plant, and Ouyide Power Group. Each of the three areas has its own gate and house number, and it takes about 20 minutes to cross all the factory areas. However, it is such a huge factory area that only two security guards are on duty.

The reporter walked straight into the Ordos Huatai vehicle production plant, the whole factory area is empty, all the production workshop doors are locked, the windows are closed and sealed, some show for 2016, some for 2018. The concrete wall of the tower, with signs hanging, was dilapidated and the cement was scattered all over the floor.

Cross a street, across the street is Ouyide Power Group. It is claimed to be "the largest and most advanced clean steam and diesel powertrain base in China", but due to the eyes, more than 2. 3% of them are wasteland, weeds are half human height, and rabbits and pheasants are running around in them.

In the Eide Group, the door of the new Eide transmission building is locked, through the glass door you can see that the workshop is as neat as new, and there are machines on the ground that have not yet been unpacked. In one side of the parking lot, there are hundreds of scrapped Huatai cars.

According to the data, Huatai Automobile was determined to be the leader of China's advanced powertrain at that time, boasting that "the only two core technologies in China are automatic transmission and diesel engine."

The propaganda board of Ouyide Power Group is covered with Huatai car propaganda posters, and indicates that Huatai Baolig introduces Ouyide diesel engine technology and adopts the core technology of Europe's top transmission.

Internal employees in Ordos confirmed to reporters that since June 2018, all production workshops have been shut down. Since last year, more than 900 people have left their jobs, and now there are fewer than 100 people left, mainly administrators and workshop leaders.

"No pay has been paid since December 2018." Ordos Huatai employees say it will be good to be able to do it by the end of the year.

Today, Ordos Huatai is extremely desolate. At that time, however, Huatai promised to obtain 6000 mu of land in Ordos, 1 billion yuan in government loans and two coal mines at a low price of 10, 000 yuan / mu, citing the local production of Traka and Santa Fe.

Huatai Automobile promised to reach 300000 vehicle production capacity and an annual output value of 60 billion yuan in 2015. However, the information disclosed by the Ordos Economic and Information Commission shows that in 2017, Huatai Automobile Ordos Base produced 17600 vehicles with an output value of 1.35 billion yuan, and all Huatai Automobile's promises were lost, and the dream of top power in China was even more in vain.

It is worth noting that, as a holding subsidiary of ou Yide, Jiangyin Hua Ode transmission project also failed. According to media reports, the plant has not really been put into production since the plant was built in 2014 and the equipment entered in 2015.

According to Ordos Huatai insiders, according to the urban development plan of Ordos City, all industries will move out of the city center, and the Huatai base is the only industrial production base still in the urban area, so it is inevitable for Huatai base to move out or be dismantled.

15 times difference in sales volume suspected of serious water injection

Wages in arrears stop production, Huatai sales are not optimistic.

Reporters visited Wuhan 4S shop found that the original 4S store has become an ordinary car maintenance shop. "Huatai owes the dealer money and the car has been mortgaged." Wuhan Huatai car sales staff admitted that Huatai car sales are not good, all the cars have been withdrawn to Xinzhou before and after the Chinese New year.

The person in charge of the Huatai car dealer told reporters that Xinzhou Huatai car was rented out and recovered after the old car, and specially stressed that "it is best not to buy."

The reporter telephoned Huatai automobile to inquire about other 4S stores in Hubei, but no one answered it all the time.

In fact, Huatai car sales data has been difficult to match its boast of "Haikou." At the 2017 auto show, Huatai publicly announced that "we will strive to sell 200000 vehicles in 2018 and more than 500000 in 2020. In the next three years, Huatai will have nearly 30 new cars on the market one after another."

But data show that Huatai sold only 71200 vehicles in 2015 and 73000 in 2016, up only 2.5% from 2015. In 2017, sales soared 81. 64% to 132600, with sales exceeding 100000 for the first time. But it fell another 9.0% in 2018, with sales falling to 120700 vehicles.

According to this calculation, Huatai Automobile has sold a total of 397500 vehicles in four years, with an average annual sales of only 99400 vehicles. It is a far cry from the expected number of more than 500000 vehicles a year.

But even such sales figures are still "hydrated" in the eyes of industry insiders. In January 2018, Huatai reported sales of 1316 vehicles, but in December 2017 it sold 21000 vehicles, which is 15 times that of the former. As early as 2011, due to Huatai car sales data for a long time serious fraud, CAAC once did not accept Huatai car reported data, but in order to maintain the integrity of the data, its sales figures will be replaced by "0".

From 2008 to April 2011, the actual number of Huatai cars in the Ministry of Public Security was 45000, but the number of cars reported to the CAA was as high as 183000, a difference of more than three times.

Huatai car dealer said bluntly that Huatai car sales are not good, data serious water injection, many dealers began to stop lifting cars in 2018.

During office hours on June 21, the Huatai Automobile Base factory in Ordos was empty.

Key Words:  Car  battery  Huatai car  base stop production