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Aichi car was exposed to operating difficulties: headquarters in arrears of rent and fees, employees in arrears of wages, low sales volume.

2025-03-30 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >

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Shulou(Shulou.com)11/24 Report--

CTOnews.com, May 10 (Xinhua)-- Aichi Automobile is a new energy car company founded in 2017, with an annual production capacity of 150000 vehicles and two mass-produced models. But recently, the company is facing serious operational difficulties.

According to the power plant, Aichi employees revealed that Aichi had suspended its operations because of a shortage of funds. The headquarters of the company lost power due to arrears of office rent, property charges and utilities, and employees were required to work from home. Moreover, employees' salaries, social security and provident funds have not been paid on time. Since February this year, the salary payment of Aichi has been abnormal, and the wages of March and April have not been settled yet. The company has only about 1600 employees left, many of whom have left, and the supplier of Aichi has also encountered the problem of arrears of payment.

At the same time, many sections of Aichi App have been emptied; maintenance packages, vehicle lifetime warranty rights and interests, discharge guns and other services have been unable to use normally.

Sales of Aichi cars have also been unsatisfactory. Figures show that Aichi sold 2600 vehicles in 2020, 3011 in 2021 and 2824 in the first eight months of 2022. In October 2022, Aichi launched its second production model, the U6, but did not improve sales. In the first three months of 2023, Aichi sold only 92 cars.

In addition to sales, Aichi's financial situation is not satisfactory. CTOnews.com inquiry public information learned that one year after its establishment, Aichi's operating income in 2018 was 33.19 million yuan, with a net loss of 970 million yuan. As of March 31, 2019, the total debt of the company is 2.407 billion yuan, and the asset-liability ratio has reached 97.5%.

Although Aichi claims to have entered more than 10 overseas markets and announced that it has received an intentional purchase order for 150000 new energy vehicles from a Thai car company, none of these have brought substantial revenue or profit to the company. Aichi had planned to list on U. S. stocks through reverse backdoor, but the plan also failed for a variety of reasons.

Fu Qiang, the founder of Aichi, has solid experience in automobile sales and management, and has held important positions in FAW-Volkswagen Audi, SAIC Volkswagen Skoda, Beijing Mercedes-Benz, Volvo and other companies. At present, the future of Aichi is not clear.

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