In the changing situation of the automobile industry, the "shutdown and shutdown turmoil" of Gaohe Automobile is undoubtedly one of the most interesting news in recent times. The founder, Ding Lei, recently appeared at the Shanghai headquarters for the first time, apologized to the employees, and said that Gaohe Automobile still has a chance to turn over, but only for a month. This month is undoubtedly a tough one for Gaohe Automotive, but it could be a turning point for the entire automotive industry.
Li Xiang, the founder of Li Auto, made an interesting point that the state should establish a merger and acquisition system with companies that have failed due to poor management and market competition. This will not only reduce the social losses caused by the collapse of car companies, but also may make a corporate giant by chance. The difficulty of actual implementation can be imagined.
So, what is the way out of Gaohe Automobile? The most likely way out is for founders to reduce their holdings and be acquired by large car companies or local state-owned assets. For example, after being acquired by a large automobile group, Gaohe will exist in the form of a "high-end new energy sub-brand" under the automobile group. In addition, the possibility of local state-owned acquisitions is greater. Previously, state-owned assets such as Yancheng in Jiangsu Province and Qingdao in Shandong Province had contributed money and land to policies on Gaohe Automobile, as "grasshoppers on a rope", of course, they did not want their investments to go down the drain.
Gaohe may still be pinning its hopes on that investment in the Middle East. Last year, the company signed a $100 million cooperation agreement with the Saudi Ministry of Investment to establish a joint venture to develop, manufacture and sell automobiles. The investment has not progressed since. In fact, it is not impossible for this investment in the Middle East to diversify its income and reduce its excessive dependence on oil at a time when electric vehicles continue to eat away at the market share of fuel vehicles.
Finally, it is worth noting that the announcement of the suspension of production and work in the internal meeting of Gaohe Automobile is "monthly", not permanent. During this period, the company will take the user's service operation and vehicle after-sales maintenance as the highest priority to ensure it. This shows that Gaohe Automobile is still trying to save itself.
The way out for Gaohe Automobile is that the founders reduce their holdings and are acquired by large car companies or local state-owned assets. At the same time, they are pinning their hopes on investment in the Middle East. These possibilities will take time to verify. Within this month, we will wait and see if Gaohe can successfully resurrect the car.