Could there be a glimmer of hope for GAC Group?
Recent online chatter suggests that GAC is poised to resume operations by the end of April.
This time, the lifeline for GAC seems to come from within the Chang'an faction, albeit now represented by its subsidiary, Avita. Insider revelations claim, "Avita has reached an agreement to acquire GAC," and assert that the information is highly reliable, with an official announcement imminent.
Simultaneously, media reports indicate that Avita has been in talks with GAC and may have already struck a cooperation agreement within the restructuring team.
The rumor mill churns, once again thrusting GAC into the public eye. However, Avita responded to media inquiries last night by dismissing the reports as "false news."
Today, Avita reiterated, stating, "Based on internal understanding, we currently have no such information."
While Avita denies the rumors, both parties have previously flirted with the idea. From the current rumblings, Avita appears to be the frontrunner to take over GAC.
Amidst the haze of truth and speculation,
Yesterday, reports emerged that Avita, under the Chang'an umbrella, will take over the struggling GAC Automotive, with an alleged agreement already in place for GAC to resume operations in April.
This information initially surfaced from a post on the Chinese social media platform Little Red Book on April 6, with the original content now purportedly restricted.
Many netizens are questioning the accuracy and reliability of the news. The original poster (OP) has indicated that it's not convenient to reveal the source for now, but insists that the information is reliable. They claimed to have received word that "the big boss has given the green light, and next is to follow the procedures."
Some netizens suspect intentional traffic diversion, but the OP insists that an official announcement will be made soon, and the truth will be revealed this month. They stated, "Either it works out, or it's a complete disappointment."
Regarding the issue of equity distribution, the whistleblower replied to netizens stating that it will be controlled by Avita Holdings, while the Gaohe brand will be retained.
As for the authenticity of the news, some netizens believe it's just another smokescreen. They express skepticism about Gaohe's resumption of work, saying, "They said the end of March before, but there was no news by the end of March." Each time, they feel like they're being teased with good news, and they believe there are too many variables until things actually happen.
Meanwhile, many people are skeptical about the collaboration between Gaohe and Avita, with some netizens even bluntly stating that the two are a "weak alliance." They believe that although Avita has the backing of Chang'an, it's not realistic for them to finance themselves and then acquire Gaohe.
Moreover, numerous former employees and suppliers of Gaohe commented below the post, stating that Gaohe still owes them unpaid wages and payments for goods.
Although the netizen adamantly claimed the reliability of the information, after this post was published, media outlets reached out to Avita for verification. Last night, Avita responded, labeling it as "fake news."
However, there has been a long-standing ambiguous relationship between the two parties, despite this recent denial.
Shortly after Gaohe announced its suspension of operations, rumors emerged that Changan Automobile might step in to rescue Gaohe by acquiring 51% of its shares. High-level executives from both companies were reportedly spotted meeting at Changan's headquarters in Chongqing.
During that time, Avita also engaged with Gaohe. Avita's president, Chen Zhuo, extended greetings to Gaohe and Ding Lei on social media, expressing anticipation and welcome for Ding's return with Gaohe. Both Avita and Gaohe official accounts reposted this interactive Weibo post.
At one point, it seemed like a win-win situation for both parties involved, but later, the Chang'an side came forward to debunk the rumor.
Who would genuinely come to the rescue of Gaohe?
On February 18th, the first day back to work after the Lunar New Year, Gaohe Motors announced a six-month halt in production, nearly two months ago.
During this period, numerous speculations arose, suggesting that Gaohe would go bankrupt, with top management absconding with funds, ultimately leaving behind a mess. However, contrary to everyone's expectations, Gaohe embarked on a series of self-rescue efforts.
First, amidst the chaos, Gaohe Motors CEO Ding Lei was spotted appearing at the Shanghai headquarters of Huaren Yuntong (Gaohe's parent company), to boost morale for employees and car owners.
At the time, Ding Lei stated that Gaohe had only a "three-month window for self-rescue," with internal executives even mentioning just one month. At the same time, Ding Lei reassured employees that following the announcement of the production halt, there was widespread attention on Gaohe from various sectors of society. "A large number of resources are coming our way, with some looking to acquire us and others looking to invest in us. We still have a very good chance," he said.
After Jack Ma's appearance at the Gao He headquarters, rumors began to swirl at the end of February that Chang'an was planning to acquire a 51% stake in Gao He, sparking hopes of a rescue for the company. Not long after, it was reported that Ding Lei had visited Chang'an headquarters in Chongqing, where he met with Zhu Huarong, the chairman of Chang'an Automobile. Photos circulating online appeared to show Ding Lei test-driving Chang'an's new energy vehicles, as he was spotted stepping out of a deep blue S7.
The high-level meeting between the two sides has escalated the speculation about potential cooperation. Zhu Huarong did not deny it, calmly stating that discussions are underway but are far from being finalized. The counterpart also confirmed that Ding Lei did indeed visit Chang'an, and friendly communications were held between the leaders of both sides.
However, Chang'an later responded by refuting claims of acquiring 51% of High Together's shares and taking over High Together's automotive business, stating that these were all unfounded rumors. Subsequently, there have been no further updates from either side.
Just when High Together was in turmoil, it got entangled in a lawsuit. On March 5th, Faraday Future (FF) announced that it was suing former high-ranking executives, including Ding Lei, founder of Human Horizons, on grounds of trade secret infringement and unfair competition. FF sought compensation for corresponding losses and further demanded that Human Horizons immediately cease infringing activities related to FF 91's commercial secrets.
Across the ocean, Jia Yueting took to Weibo to directly attack Ding Lei, accusing him by name. He claimed that Ding Lei, during his nearly two-year tenure, drew a whopping income of up to tens of millions, purportedly learning FF's brand-new AI and internet-based car manufacturing concepts and knowledge. However, Jia alleged that Ding, abusing his position, had been scheming and implementing the theft of FF's intellectual property, technical data, and trade secrets.
Instead of the messiah-like "buyer" awaited by the struggling Faraday Future (FF), what they got was a lawsuit, a jaw-dropping turn of events.
In response to Jia Yueting and FF's lawsuit, both Gao He and Ding Lei swiftly issued two statements, denouncing the allegations as unfounded, defamatory, and slanderous.
Following a series of scandals, Gaohe's trajectory has become increasingly enigmatic. In a surprising turn of events for self-preservation, Gaohe has ventured into an unexpected territory: live-streaming e-commerce.
Yang Yueqing, the project director of Gaohe's automotive engineering, has made multiple appearances on Gaohe's official live-streaming platform to sell a wide range of products, from Gaohe-branded merchandise to steaks, showcasing a remarkable diversity in offerings.
During these live-streams on Gaohe's official platform, Yang Yueqing has provided detailed explanations of Gaohe's current situation, highlighting the loss of income streams and expressing the need to secure funds through various means, including live-streaming e-commerce.
"If any brands are interested in partnering with us for livestreaming sales, they are welcome to approach us. All the revenue generated will be invested directly into the frontline after-sales service of Gaohe Motors," the company stated, emphasizing that the income from livestreaming is dedicated to ensuring the security of car owners.
One can only say that Gaohe is truly putting in the effort. Apart from livestreaming sales, they even organized two sessions featuring the transformation of senior executive Yang Yueqing. To be honest, if Gaohe makes a comeback, Ding Lei really needs to promote and reward Yang Yueqing for his dedication and achievements.
Apart from that, there hasn't been any good news from Gaohu, and Ding Lei, as its legal representative, has been restricted due to failure to fulfill payment obligations as stipulated in the effective legal documents within the specified period stated in the execution notice.
According to feedback from many netizens, Gaohu's stores and experience centers across the country have seen many changes, such as the Gaohu experience store in Chengdu's Taikoo Li already sporting a different name. Similar transformations have been observed in other locations.
Every incident seems to be adding insult to injury.
With more than half of the three-month "window of opportunity" mentioned by Ding Lei now behind us, what lies ahead for Gaohu?
