Dongfeng Group’s response to Dongfeng Renault dealer’s claim: under negotiation

On May 7, in response to Dongfeng Renault’s distributor claiming 1.406 billion yuan from the manufacturer, Qin Jie, deputy director of Dongfeng Group’s Party committee work department, told Beijing Business Daily that as a company with independent legal personality, Dongfeng Renault’s creditor’s rights and debts related issues were handled by Dongfeng Renault. For the aftermath of Dongfeng Renault’s restructuring, Dongfeng Renault is currently negotiating with the dealers, but the negotiation itself also has a process, which needs some time.
Recently, some dealers of Dongfeng Renault have issued official letters to Dongfeng Renault and Renault (Beijing), claiming 1.406 billion yuan. The distributor believes that the unilateral breach of contract by Dongfeng Renault and Renault (Beijing) has caused losses to the distributor. To this end, the dealers put forward a total of 7 appeals, including the request to return the rebate, cash and deposit of the dealer’s system account; to recover the existing inventory vehicles, accessories and original products at the original price; and to compensate for the investment expenses in the establishment of the store, staff salaries, operating costs, and personnel severance payments, totaling 1.406 billion yuan.
On April 14, Dongfeng Group and Renault group announced that Renault Group intends to transfer its 50% equity of Dongfeng Renault to Dongfeng Group, and Dongfeng Renault will stop Renault brand related business activities. As for the development of Renault brand passenger cars, Renault group will give details in the new medium-term development plan.
For the disposal of Dongfeng Renault after Renault withdrew, Dongfeng Group disclosed in the announcement that the group planned to transform and upgrade Dongfeng Renault. According to the overall strategic layout, after taking over Dongfeng Renault, Dongfeng Group’s direction of restructuring, transformation and upgrading is intelligent manufacturing.
Zhang Xiang, an auto industry analyst, believes that it is wise for Renault to abandon Dongfeng Renault in China at this time. “From a legal point of view, after Dongfeng and Renault have delivered Dongfeng Renault’s equity, Dongfeng Renault’s aftermath will be settled by Dongfeng.” A person close to Dongfeng Renault said.
However, some dealers are dissatisfied with Renault group’s direct exit. Some dealers of Dongfeng Renault said in an open letter to Dongfeng Motor and Renault automobile that “stopping production immediately is not the only choice and the best way out. Not to mention facing difficulties and seeking development again is to stop brand authorization within a time limit, gradually withdraw in an orderly manner, or temporarily double label production and sales, giving suppliers, dealers, employees of both sides, including Dongfeng Renault itself, a certain buffer time and some opportunities to solve remaining problems are better than such sudden death and fatal blow. “.
It is worth noting that at present, some dealers of Dongfeng Renault have signed agreements with both Dongfeng Renault and Renault. These dealers are both dealers of Dongfeng Renault and Renault. Renault will continue to provide customer service for 300000 Renault car owners in China through Renault dealers and through the alliance’s collaborative mechanism, the relevant person in charge of Renault China said.
At present, Dongfeng Renault has four models on sale, such as Correa, Koleos and kelebin, as well as hundreds of dealers. It is understood that Dongfeng Renault has issued an accounting declaration notice to the dealers on April 17, and will discuss the debt settlement scheme based on the third-party assets evaluation according to the amount of claims and debts declared by the dealers.