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Old 07-07-2020, 11:13 AM   #15
dmitra
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Join Date: Nov 2013
Posts: 7,682
Default Link Tour

Link Tour has been a disaster. After a flurry of activity in 2018, everything died down in 2019. According to CAAM, sales (wholesale) of the brand were 9224 in 2018, 485 in 2019 (all in January) and none at all since then. In its haste to expand rapidly, the Yogomo group had spent way beyond its means, and the new factory in Wuxi, with a projected capacity of 150,000 cars annually, was a spectacular example of this profligacy, in hindsight. The usual story followed: millions of yuan in unpaid dues to suppliers, project contractors, engineering consultants (reportedly around 40%), and -- do I even need to state the obvious? -- unpaid salaries to employees and layoffs. News is not very clear at that point, but it seems Wuxi and other production bases were shut down. A ruckus ensued which got the police and judiciary involved and assets, at least those related to Link Tour and the Wuxi plant, probably got attached. All this happened in the third quarter of 2019.

Subsequently, it was rumored that a corporate group, United Fortune (中联众福 Zhonglian Zhongfu), which had some involvement in battery manufacturing tech, was either interested in taking over or had actually taken over Link Tour. However, this is probably not true because even today the QCC Corporate Registry shows Link Tour Auto in the hands of the original promoters.

I am surprised that while all this was going on, it does not appear that Great Wall Motors, which had a 25% stake in Link Tour, made any effort to bail this company out. In December 2019, GWM actually transferred its 25% stake to a subsidiary, Shenzhen Great Wall Motor Sales Co., Ltd. Maybe its eyes were dazzled by Spotlight, and therefore lost focus on the plight of Link Tour.

https://www.sohu.com/a/342346805_526255
https://kknews.cc/car/jlg3pmq.html
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