Shenyang Brilliance declared bankruptcy. Will the Zhonghua brand be reproduced by other companies?

Brilliance Automobile Group declared bankruptcy, and BMW Brilliance, as its trump card industry, became the focus. BMW is currently producing as usual, and BMW Brilliance also showed the working conditions of the Tiexi plant on its official Weibo. As seen in the video, all the workers on the assembly line are busy in an orderly manner. At the same time, according to BMW insiders, BMW Brilliance is currently profitable and operating in good condition. In addition, BMW Brilliance has released a large number of recruitment information and seems to be preparing for a full deployment in the Chinese market. In addition, since the bankruptcy was confirmed, there have been voices saying that the BMW 3 Series will be produced by Great Wall. Regarding the production of the BMW 3 Series, Fu Xiaokang, vice president of Great Wall Motors, said that after learning that the report was untrue, it no longer happened.

Senior automotive analyst Zhang Xiang told reporters that the bankruptcy of Brilliance Group has no impact on BMW Brilliance because Brilliance Group had already allocated high-quality assets such as BMW Brilliance before its bankruptcy, and Brilliance Group is not a direct shareholder of BMW Brilliance. Brilliance Group owns Brilliance China, Jinbei Automobile Co., Ltd., Shanghai Shenhua Holdings Co., Ltd. and other listed companies, as well as more than 160 wholly-owned, holding and joint-stock companies. It owns three independent brands, Zhonghua, Jinbei and Songhua, as well as two joint venture brands, BMW Brilliance and Renault Brilliance. The Shenyang Intermediate People's Court ruled to accept the creditor's application for bankruptcy and reorganization of Brilliance Group. Brilliance Group officially declared bankruptcy and reorganization, causing an uproar. In response to the bankruptcy of Brilliance Group, BMW publicly responded that its transaction to increase its stake in BMW Brilliance would not be affected by the debt problems of its parent company, Brilliance Automotive Group.

BMW’s output is still the same, and BMW Brilliance also showed the work of the Tiexi plant on BMW Brilliance’s official Weibo. All the workers on the assembly line are busy working. At the same time, some BMW staff said that BMW Brilliance's production and operations are normal and no impact has been seen. In addition, BMW Brilliance has released a large number of recruitment positions, including product management, equipment maintenance electricians, CNC and production line operators, forklift drivers and other positions. And a BMW insider told reporters that BMW Brilliance's profitability and operating conditions are good. Automotive analyst Zhang Xiang told reporters that the bankruptcy of Brilliance Group has no impact on BMW Brilliance because Brilliance Group had already allocated high-quality assets such as BMW Brilliance before its bankruptcy, and Brilliance Group is not a direct shareholder of BMW Brilliance

Shenyang Jinbei Automobile Industry Holding Co., Ltd. and BMW Holding Co., Ltd. each hold 50 shares of BMW Brilliance. Brilliance Group was established after the two-tier equity penetration of Shenyang Jinbei Automobile. Another lawyer said that the subsidiary has an independent legal personality, has its own company name and articles of association, conducts business activities in its own name, and its property is independent of the parent company. In terms of legal liability, subsidiaries and parent companies also bear their own legal liabilities to the extent of their respective properties and are not jointly and jointly bound with each other. Although the parent company has control over the subsidiary, it is independent in terms of property responsibility and only obtains investment income from the subsidiary.