Hafei May Help Changan Market List with OEM Hat

When 10 times sales decline, Hafei announces to cut 1,200 employees. Hafei now drifts deeper and deeper into its crisis.

Year 2013, Hafei sales have stepped down to 21 thousand, which has 10 times decline than 220 thousand sales of 5 years ago when Hafei met Changan at the first moment. Hafei employment has cut to 5 thousands from 6 thousand in year 2012.

Hafei almost becomes total OEM plant of Changan since it merged by Changan. No more new passenger car introduces, and mini bus business sales keep decline. At present, Changan Alsvin OEM is the most important profit of Hafei. As known that Ford Carnival may outsources to Hafei as well.

After Changhe remarry with Beijing Automobile, where is the way out of Hafei?

“The original Hafei is gone, nowHafei is only an OEM plant.”An insider of Hafei tells reporter. According to statistics, Hafei Lubao sales of Jan to Feb are only 3, and Saima sales are 2. Feb this year, all modes under Hafei are sold 160. Compared with 4,800 sales Feb of 2 years ago, it has 30 times distance. “We have not produced Lubao for 4 months. But it does not mean production stop, but Hafei lacks of capital.”The above person says “but we heard that market demand is still there, and it has arranged production next month.”

Stiff sales influence dealer profit. How to survive become the most important question for Hafei and its dealers now.

In fact, insolvency Hafei has survived with OEM profit in year 2013 already. As it known, Hafei plans to produce 8,100 cars this March, but all of them are Changan B501, which is Alsvin V3 OEM. Besides, Alsvin V3 has realized 77.5 thousands sales last year which with 209% growth. It becomes the main profit source of Hafei.

It seems that OEM is the only way out for Hafei to stand by according to the situation now. Message says that Ford Carnival will outsource to Hafei in year 2015 after its contact expired in year 2014. Considering about Ford sales growth those years, it will help Hafei solve its capital problem at certain degree.

However, the message has not confirmed by Changan Ford. About the Ford Carnival Hafei OEM, the above Hafei insider says “it is heard about the message, but has not received any confirmed notification yet.”Besides, the person says “Ford Hangzhou plant will be put into operation in year 2015. Therefore, Ford mode Hafei OEM shall not happen in short time.”