Drive China, February 21, 2024 News: Recently, the news about the suspension of work and production for 6 months and the salary reduction of employees has become the focus of the industry. This not only reveals the current business difficulties of Gaohe Automobile, but also reflects the pressure faced by the entire automotive industry in the fierce competition. At the same time, Li Xiang, CEO of Li Auto, shared his views on Weibo, which attracted widespread attention and discussion.
First of all, the predicament of Gaohe Automobile is multifaceted. From the perspective of the external environment, the current competition in the automobile market is increasingly intensified, and new brands and new technologies emerge in an endless stream, which further divides the market share. For an emerging car company like Gaohe, it is not easy to break through in this red sea. From the perspective of the internal environment, problems such as tight capital chain and insufficient investment in technology research and development have also plagued the company's development.
Li Xiang said on Weibo that the state should guide the merger and acquisition system of auto companies, which can not only optimize the allocation of resources, but also reduce the social losses caused by poor business management. He used the example of the three major U.S. automobile companies to emphasize the importance of mergers and acquisitions in the automotive industry.
In addition, some netizens directly shouted to Li Xiang, hoping that Li Auto could make a merger and acquisition. In this regard, Li Xiang said that Li Auto has successfully renovated Beijing Hyundai's factory and produced Ideal MEGA, setting a good example for the industry.
Overall, the predicament of Gaohe Automobile is a microcosm of the current competitive situation in the automotive industry. For industry leaders like Li Xiang, their views and actions are not only related to the future of their own companies, but also affect the direction of the entire industry.