On November 23, Dayun Auto Co., Ltd. (Dayun Auto) issued a statement stating that due to difficulties in liquidity, the company is undergoing restructuring according to the law. Some employees of the company indicated that it was the dream of luxury cars that dragged down the enterprise.
According to a report from Tencent News “Firstline” on November 23, Dayun Auto released a statement titled “Statement on the Restructuring of Dayun Auto” internally to address recent bankruptcy rumors. The statement mentioned that temporary liquidity difficulties had an impact on the company’s development, and in order to safeguard the interests of all parties, Dayun Auto is undergoing restructuring in accordance with legal procedures.
Legal litigation information from Tianyancha showed that on November 19, Dayun Auto Co., Ltd., Chengdu Dayun Auto Group Co., Ltd., and Hubei Dayun Auto Co., Ltd. all had a new bankruptcy case filed against them, with the applicant being Jiangsu Kaixunda High-speed Transmission Technology Development Co., Ltd., handled by the Intermediate People’s Court of Yuncheng City, Shanxi Province. Chengdu Dayun Auto Group Co., Ltd. and Hubei Dayun Auto Co., Ltd. are both wholly-owned subsidiaries of Dayun Auto Co., Ltd.
Dayun Auto is a subsidiary under the Dayun Group. According to Tianyancha, as of December 31, 2023, Dayun Auto Co., Ltd. was 99.875% owned by Dayun Kyushu Group Co., Ltd., and 0.125% owned by Dayun Group Co., Ltd., with the former being a wholly-owned subsidiary of the latter.
Dayun Group started out with motorcycles, and in 2004, they began manufacturing commercial vehicles. In 2016, they initiated the development of new energy commercial vehicles, followed by the launch of a new energy passenger car strategy in 2017, introducing two mass-produced models, the Yuanzhi M1 and Yuetiger. In August 2022, Dayun unveiled the Far Horizon car brand at the Chengdu Auto Show, targeting the high-end market segment of 300,000 to 600,000 yuan, which was once dubbed as the ” ”
However, the sales volume of Far Horizon vehicles has consistently underperformed, with total sales of less than 6,000 units in the first three quarters of this year. In November of this year, Far Horizon Cars, in a departure from past active participation in auto shows, was absent from the Guangzhou International Auto Show.
Since the beginning of this year, Far Horizon Cars has closed a large number of stores, with reports of wage arrears for employees surfacing in June. By the end of October, several employees revealed that Far Horizon Cars had announced a company-wide vacation and was in communication with local government authorities about future development and seeking investments, hoping to receive government “intervention.”
A staff member of Chengdu Dayun Auto Group told Tencent News “Firstline” that the company is currently in a state of production suspension, with employees officially on leave for a month, but in reality, the management mentioned that the leave might extend until after the new year. Currently, the factory has almost no new orders, as suppliers are unwilling to deliver, and even previously delivered inventory is being recalled by suppliers. The employee mentioned that there are only a few options for the future of Dayun Auto – bankruptcy, acquisition, financing, or government intervention.
The employee believes that Far Horizon has dragged down the entire Dayun Auto, as funds from companies in Chengdu, Shanxi, Hubei, and other regions were all invested in Far Horizon Cars, and the quality and sales volume of Far Horizon Cars can easily be found online. He remarked, “Many employees of Dayun do not understand why the boss had to get involved in sedan manufacturing; couldn’t we have just focused on understanding commercial vehicles properly?”
An internet user, “I am a Three Kingdoms fan,” commented saying, “Without Bentley’s destiny, acquiring Bentley’s problems! Just copying a car logo makes one think they are part of the Bentley family.”
“Prosperity with the Nation” added, “Blind development is a common problem! Just like Chunlan Air Conditioning diversified into motorcycles and cars, Gree ventured into making phones, cars, and chips simultaneously. If the core business is not clear, developing tertiary industries will result in failure. The result is trying to succeed in both fields, but ending up failing in both.”
Another netizen, “Honk Honk,” expressed, “The quality is too poor, too many minor issues, encountering technical bottlenecks, inability to innovate, combined with excessive competition in the industry. More and more drivers have realized the essence of the automotive industry, quality being the first priority for a car company’s survival, but many in the industry seem to have forgotten this.”
Public records show that Dayun Auto Co., Ltd. was registered on August 27, 2007, in the Market Supervision Administration of Yuncheng City, Shanxi Province. The company’s business scope includes the manufacturing and sales of special vehicles, manufacturing and sales of tank-type dangerous goods transportation vehicles, and manufacturing and selling of automotive accessories, among others.