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Avita's acquisition of Gaohe Automobile is not true! Spectators can disperse

Zhang Bai Chuan Thu, Apr 11 2024 10:02 AM EST

Recently, there has been widespread online speculation about frequent contacts between Gaohe and Avita, with rumors suggesting "Avita has acquired Gaohe, and Gaohe is expected to resume production this month." However, Avita promptly responded on the same day, stating: "Don't talk nonsense, it's not happening."

Since January, there have been rumors circulating online about Gaohe halting production and operations. Despite official denials from Gaohe, founder Ding Lei eventually acknowledged during a meeting with some employees and car owners that "the brand is entering a critical period, with a chance for a turnaround in three months. However, there are many external companies interested in Gaohe, with intentions of acquisition and investment. We will seize the opportunity. Currently, a temporary organization has been established to maintain the basic operations of the company."

The rumors about Avita's acquisition are not entirely baseless. Previously, there were rumors circulating online about Gaohe CEO Ding Lei's visit to Changan Automobile and his meeting with Changan Automobile Chairman Zhu Huarong, with photos circulating as evidence, and the news was also confirmed by the Changan brand.

Even Zhu Huarong responded, saying: "Discussions are ongoing, but there is still a long way to go before any agreement is reached." However, there has been little follow-up, and the event quickly faded from public view as the excitement diminished. 83aa00b1-0450-47ec-a924-b19f3e6a9520.jpg The recent rumor circulating on the internet about Avita, a subsidiary of Chang'an, acquiring Gaohe, seems to align more with public expectations. The similarity in tone has even prompted netizens to comment, "They belong together."

Simultaneously, Chen Zhuo, the CEO of Avita Technology, previously expressed support for Ding Lei, stating, "He is a respected industry senior, and we look forward to Mr. Ding and Gaohe's return." Both Gaohe and Avita's official accounts have also shared and interacted with each other's posts. 1edaaab2-e44a-4ae5-bf10-27b4e0ff034d.jpg Since the rumors of suspension, both Gaohe and Ding Lei have faced company and personal stock freezes. Later, they were confronted with lawsuits from Jia Yueting's FF regarding plagiarism, along with incidents of privacy breaches through in-car cameras.

Despite these tough times, both the brand and Ding Lei have been proactive. Apart from actively seeking corporate investments and acquisitions, Yang Yueqing, the project director of Gaohe Automotive Engineering, has switched careers to embark on live streaming sales. All income generated will be dedicated to frontline after-sales services, ensuring the normal operation of vehicles for owners. b483bd52-dbbe-4b94-adfc-3fe946c9c5b3.jpg The brand of Gaohe and the spirit of Ding Lei are definitely worthy of respect and admiration, but they still cannot cover up the numerous issues exposed by the operation of the Gaohe brand.

Although the acquisition news exposed online has not been confirmed yet, it can be considered a ray of light in the darkness. We look forward to good news. If the good news comes true, the mature management system of established automotive companies would be extremely beneficial for the future development of the Gaohe brand. 48853350-c679-468f-9412-0c448e230efa.jpg