What has Brilliance Auto experienced from one of the most powerful car companies in China to bankruptcy and reorganization?

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The story of Brilliance begins with the Golden Cup.

in October p>1958, the Shenyang municipal government invested 1.8 million yuan to establish Shenyang automobile factory, which was later renamed as Shenyang automobile factory, and incorporated the local second state-owned machinery factory, automobile assembly factory and public-private joint-venture Minsheng vehicle parts factory. At that time, its main task was to produce military modified cars.

in December of the same year, Shenyang automobile factory trial-produced three Julong brand 2.5-ton light trucks with reference to Soviet TA351 cars. To stop production in 1962, * * * trial-produced and produced 534 vehicles.

Through the Julong brand car, Shen Qi's team has been trained and formed the manufacturing ability of front/rear axle, gearbox and engine.

in March, 1966, Shenqi trial-produced nine CA131 3-ton light trucks, but they were not mass-produced.

In p>197, Liaoning Automobile Repair Factory, located in Shenyang, produced 53 Julong SY13 cars with reciprocating engines. Later, on the basis of Julong SY13, Shenqi introduced Liaoning No.2 automobile. Liaoning Automobile Repair Factory was transformed into a professional automobile gear factory and renamed as Shenyang Automobile Gear Factory.

in p>1971, Liaoning No.2 was mass-produced, and 115 vehicles were produced the following year.

two years later, according to the unified planning of Liaoning machinery industry bureau, Shenyang Automobile Co., Ltd. trial-produced three prototype vehicles in March 1974 according to BJ13 drawings, and later improved them into SY132 light truck, which was put into production in June 1975 and produced 32 vehicles that year. Also in that year, Shenyang Automobile Factory became one of the designated manufacturers of light trucks in China.

Later, Shenqi successively developed variant products including SY132A and SY132D double-row passenger and freight vehicles, and also trial-produced SY133 light truck.

in December p>1981, SY132C and SY132D began to use the Jinbei brand trademark. This can be seen as the beginning of the Jinbei car.

two years later, these two cars won the excellent new product Feilong Award of the State Economic Commission. At the same time, in May 1985, in the 25,-kilometer reliability test of 13 major manufacturers of light trucks organized by China Automobile Company, Shenqi also won the first place.

It is worth mentioning that in 1982, Shenyang Car Factory, located in Shenyang, also began to use the Jinbei trademark to produce SY622 light passenger cars.

Later, Shenqi adopted Mitsubishi FCA cab technology and Isuzu N series chassis technology to carry out modification design, and launched Jinbei SY141 series truck.

at the end of 198s, besides SY14 and SY141, the leading products of Shenyang Automobile Company also included SY131SAH light trucks, SY648, SY6474 light buses and SY54 series special vehicles.

in p>1987, with Shenyang automobile factory and Shenyang car factory as the main bodies, Shenyang Agricultural Machinery Automobile Industry Bureau integrated dozens of subordinate enterprises and established Jinbei Automobile Co., Ltd. with the trust and investment company of Shenyang Branch of China Construction Bank, with Zhao Xiyou as the chairman.

at that time, Jinbei automobile was faced with many problems because of its scattered personnel and old equipment. In order to raise funds and get out of the predicament, at the end of 1988, Zhao Xiyou thought of financing by issuing stocks. Jinbei also became the first joint-stock enterprise in the three northeastern provinces to be allowed to issue shares publicly.

However, after more than a year's operation, Jinbei only sold half of its shares, and the other half was smashed in its hands.

At the same time of issuing shares, in 1989, Jinbei introduced the fourth generation Toyota Sea Lion light bus in the form of CKD complete parts assembly, which gained market recognition. However, due to the impact of Japan's economic bubble, Jinbei's speed of selling cars to make money simply can't keep up with the increase of the yen, and the returned funds can't afford to buy new parts.

Jinbei automobile is in a new dilemma.

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At this time, the "savior" Yang Rong appeared.

interestingly, the resume of such a man of the hour has always been a mystery.

Yang Rong claimed to be from Huizhou, Anhui Province, and graduated from Southwestern University of Finance and Economics with a doctorate in economics. I fought in Vietnam and was fatally wounded in 1988, but miraculously survived.

However, according to media reports, Yang Rong was actually born in Beiguo Town, Jiangyin City, Jiangsu Province. His original name was Yang Yong and he had four brothers. After graduating from junior high school, I worked as a chef, then contracted to run a small shop, and then worked for Jiangyin Foreign Trade Company. In 1989, he went to Shanghai for stock trading, and gained the appreciation of Xu Wentong, a financial educator, with his keen sense of capital and capable operation.

in the early 199s, Yangrong established Huabo Finance Company in Hong Kong. Its initial investor is Hainan Huayin International Trust and Investment Company, which is chaired by Xu Wentong.

It is understood that the main business of Huabo Finance is fund lending, bond and stock trading. It is said that the first bucket of gold in Yangrong was accumulated at this time.

at that time, many state-owned enterprises were faced with survival crisis due to system and mechanism problems. In Xu Wentong's view, it is difficult to revitalize these enterprises only by loosening management and financial blood transfusion, and the most important thing should be the capital market. Yang Rong is deeply impressed.

Under this background, Yang Rong began to contact Zhao Xiyou and bought almost all the remaining shares of Jinbei.

Yangrong's capital injection temporarily solved the crisis of Jinbei.

this is only the first step of yang Rong.

In p>1991, funded by Hainan Huayin International Trust, Huabo Finance, Huayin Trust and Jinbei Automobile jointly established Shenyang Jinbei Bus Manufacturing Co., Ltd., which became the main body of production and operation of Jinbei Sea Lion and other light bus products, among which Jinbei Automobile held 6%, Huabo 25% and Huayin 15%. One year later, Huayin transferred its shares to Huabo, and Yangrong obtained a 4% stake in Shenyang Jinbei Bus.

At the same time, Yangrong also started to operate in the capital market.

In May p>1992, in order to go public overseas, the Education Department of Huabo Finance and Central Bank under Yangrong, China Finance College and Huayin Trust jointly established the China Financial Education Foundation. The registered capital of the Foundation is 2.1 million yuan, of which 2 million yuan is contributed by Yangrong and 1, yuan is allocated by the Education Department of the Central Bank.

In June, China Financial Education Foundation established Brilliance China Automobile Holding Co., Ltd. in Bermuda, and 4% of the shares of Shenyang Jinbei Bus held by Huabo were all injected into this shell company established for listing.

two months later, Yangrong exchanged shares on the grounds that "the shares are only 4%, which does not meet the requirements for independent listing in the United States", and increased the share ratio of Brilliance to Shenyang Jinbei Bus to 51% and became the controlling shareholder.

In July p>1992, Jinbei Automobile Co., Ltd. was listed on the Shanghai Stock Exchange.

in October, Brilliance China was listed on the NYSE, becoming the first China company to be listed in the US.

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In November 1993, Shenyang Mayor Wu Disheng was killed in an Israeli plane crash. A month later, Zhao Xiyou, chairman of Jinbei Automobile, retired due to illness. The departure of these two key figures broke the balance established before Jinbei, and the new leader transferred from the local government began to compete for the control of Jinbei bus, but it did not succeed.

In order to check and balance Yangrong, in 1995, Jinbei Automobile even transferred 51% of its shares to FAW Group at a symbolic price of 1.15 yuan, making it the controlling shareholder of Jinbei Automobile, and the company name was changed to FAW Jinbei Automobile Co., Ltd. However, FAW still failed to really intervene in Jinbei bus business.

under the leadership of yangrong, Shenyang Jinbei bus grew rapidly, becoming the leader of domestic light bus market in 1997, with an annual sales growth rate of 5%, and the sales volume surged from 915 in 1995 to 6, in 2.

in the early 199s, the industrial policy of automobile industry promulgated by the state began to encourage private people to buy cars. People who saw business opportunities flocked to the automobile manufacturing industry. Yang Rong also set his sights on the emerging market of family cars.

But in the field of car manufacturing, Jinbei has no experience.

Yangrong adopts a two-track parallel strategy, seeking overseas cooperation on the one hand and engaging in independent research and development on the other.

In terms of foreign cooperation, Brilliance has successively cooperated with a number of international automobile companies.

1. Establish Jinbei General Motors Co., Ltd. with American General Motors to produce S-1 pickup trucks, Pioneer SUVs and other models;

2. Reach a cooperation intention with BMW to jointly produce BMW 3 Series and 5 Series cars;

3. Take over Sanjiang Renault, acquire 55% equity, and plan to introduce Renault family economy car "Gan Guo";

Fourth, acquire Shenyang Aerospace Mitsubishi and cooperate with Mitsubishi to produce car engines;

5. Cooperate with Toyota to develop economical cars;

VI. Develop 491Q-ME gasoline engine with Fuld, the largest supplier of auto parts in the world;

7. Cooperate with London Taxi Company to exclusively produce and sell Austin taxi TX1 in China market.

In addition, Brilliance also invested 3 million yuan to establish Hebei Zhongxing Automobile Manufacturing Co., Ltd. with a joint venture with Hebei Tianye, holding 6% of the shares.

in terms of independent research and development, Yangrong invited George Yarrow, who has reached the peak, to take charge of vehicle design, and invited MIRA, an international authority, to verify the performance of the whole vehicle. Its stamping, welding, painting, assembly process equipment and parts are also from world-renowned manufacturers.

with such a large investment, in December 2, the first-generation zhonghua car officially rolled off the production line, becoming the only self-owned brand model capable of challenging the joint venture mid-to high-end cars at that time.

At that time, Yang Rong held a calligraphy work of "China's first car" and excitedly announced his dream: "By 26, the only one on the beachhead of China's automobile industry who dares to challenge foreign companies is my Brilliance."

a month later, the Shenyang municipal government awarded Yang Rong the title of "honorary citizen". At that ceremony, Yangrong announced Brilliance's performance in 2: sales revenue was nearly 7 billion yuan, and after-tax profit was 1.8 billion yuan, which was second only to Shanghai Volkswagen and FAW-Volkswagen, making it the roof of the world of China automobile market.

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Shortly after zhonghua car rolled off the production line, Yangrong found that the Mitsubishi engine lacked power and did not match zhonghua car. After Mitsubishi refused to update the technology, BMW brokered the bridge, and Yangrong began to contact British Rover to discuss engine cooperation projects.

Soon after, the negotiation between Yangrong and Rover rose from engine cooperation to comprehensive joint venture. In the end, the two sides reached an agreement to set up a joint venture company, and the Chinese side invested in land and factory buildings, accounting for 51% of the shares; Rover invested in products, technology and equipment, holding 49%. After the joint venture, all Rover products will be moved to China for production, among which the products exported to Europe will use the Rover brand, and the products exported to China and the Asia-Pacific region will use the Chinese brand. In addition, China will lend Rover 19 million pounds in cash for layoffs, factory relocation and new car research and development.

this mode of cooperation still makes the industry yearn for it.

however, yang Rong made a fatal mistake-he decided to put the rover project in Ningbo, Zhejiang province. This is a betrayal for Shenyang, which has just experienced the "Muma" case.

At the same time, the ownership of Brilliance has been confusing and ambiguous. To this end, Yangrong has designed an extremely complicated "capital maze" and planned a "new brilliance" with clear property rights.

However, things did not develop in the direction of Yang Rong deduction, and the property rights negotiation with Shenyang finally broke down.

in March, 22, Brilliance and all its subsidiaries were transferred to ZF in Liaoning province at one time.

in June, yang Rong was dismissed by the board of directors of brilliance auto; In October, Yang Rong was arrested, but at this time Yang Rong had already fled overseas.

The Yangrong case has also become a real case of "investment can't compete with Shanhaiguan".

since then, brilliance auto group has become a wholly state-owned company in Liaoning province through multiple equity changes. Brilliance Auto Group also returned to Liaoning Province quickly and comprehensively.

Ningbo rover project and Hubei Xiaogan Renault project were forcibly terminated, Jinbei GM was integrated by Shanghai GM, and the cooperation with British taxi companies was terminated halfway. In addition, Brilliance has also made a large-scale adjustment to parts suppliers, while abandoning many suppliers outside Liaoning Province, it has also fostered parts factories in Liaoning Province.

In the first year after Yang Rong left, Brilliance didn't seem to be greatly affected.

in p>23, zhonghua car sold 25, vehicles with a pre-tax profit of 2 million yuan.

However, by 24, the situation had gone from bad to worse. The sales volume in zhonghua car dropped to 1,9 vehicles, with an operating loss of 6 million yuan. The sales volume of Jinbei sea lion dropped by 18%, and it lost the title of light passenger sales champion that had been maintained for five years.

brilliance auto group is in chaos. From Yangrong to the end of 25, the top management changed four dials. When the media reporters went to Shenyang for an interview, they couldn't even find the office of Brilliance Headquarters, because the relevant departments didn't know which department Brilliance Auto should belong to.

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At the end of 25, the accumulated losses of Brilliance in the past three years reached 3.2 billion yuan, and the factory almost stopped production.

corresponding to the poor financial situation, there are complicated business and personnel relations. The complex property rights relations generated by the private-run transformation into state-owned, the complex factional relations generated by the repeated changes of leadership in a short period of time, and the massive loss of outstanding talents have made this once-glorious enterprise struggling.

Under such circumstances, Qi Yumin took over Brilliance.

Before that, Qi Yumin was the deputy mayor of Dalian, and before that, he was the chairman and general manager of Dalian Heavy Industry & Lifting Group Co., Ltd., with more than 2 years of enterprise management experience and ZF work experience.

In the face of Brilliance's serious illness, Qi Yumin took a strong medicine.

first, push the upstream. Ten days after taking office, Qi Yumin went south to Guangzhou? I met with the CEO of Guangfa Bank and successfully got a loan of 3 million yuan. Since then, I have borrowed 7 million yuan from several banks. With this money, Brilliance also paid the arrears of parts suppliers and paid the wages of employees who were in arrears.

then, qi Yumin launched a price war.

The slow-moving China Zunchi sedan was reduced in price by diving, with the 13, yuan version reduced to 11, yuan and the 17, yuan version reduced to 13, yuan. At the same time, Qi Yumin rushed to launch the second car, Chunghwa Junjie, with a price below 1, yuan.

In the joint venture sector, Qi Yumin delegated power to BMW Brilliance, and gave the finance and sales to BMW.

these measures have enabled brilliance to achieve double growth in the independent and joint venture sectors in a short period of time. In 27, Brilliance Auto Group's vehicle sales exceeded 3, vehicles, and its sales revenue exceeded 4 billion yuan, turning losses into profits in one fell swoop.

That year, Qi Yumin's prestige reached its peak. Also in that year, Brilliance China delisted from NYSE.

However, this operation has also laid a curse for the long-term development of Brilliance.

Brilliance, under Qi Yumin's leadership, ignores independent research and development and emphasizes technology integration. He prefers to develop new cars by using the mature technology of foreign car companies rather than establishing his own positive research and development system.

Qi Yumin once said in an interview, "I dream of having a product whose chassis is adjusted by Porsche; Its shape, interior and exterior decoration are made in Italy; Its engine is in cooperation with BMW. As soon as the three resources are integrated, will a good car come out? "

This idea has enabled Brilliance Auto to create a positive R&D system while other China car companies are striving to do so.