Reviving by alternative energy vehicles, how can zombie auto enterprises create their future?

34 zombie auto companies have revived by alternative energy vehicles. In October 15th, 2013, Ministry of Industry and Information Technology published Announcement on Special Publicity of Auto Manufacturing Companies, showing 48 auto companies, which cannot maintain their normal production and operation. On November 12th, 2015, 14 auto companies were made public notification on the website of Ministry of Industry and Information Technology for failing in applying market access. According to reporters’ calculation, at least 12 auto companies among the 48 zombie auto companies have turned into alternative energy vehicle companies, opening up a new way for survival.
Reporters also find out that the 12 reviving companies are all bus companies. “The alternative energy bus has a low threshold of technology R&D. Besides, regional protectionism and high subsidies all urge companies to obtain bus qualification.” One expert said.
The companies are mainly surviving by self-rescue or buy-out. 3 companies are choosing self-rescue, while 9 companies are being brought or merged.
The market all concerns what the companies’ futures will be after being brought. Some experts believe that, “Auto manufacturing has its entry institution. Being brought is a way of efficiently using resources, but a company’s future development should also follow the market rule.” Other experts divide the auto companies into two categories, the first of which has rich capital and invests funds in the market, while the second of which follows the principle of opportunism. The first has an expected future, while the second is doomed to vanish in the market.
In fact, some examples have verified the above judgments. Some government officials said recently that, the alternative energy vehicle industry faces a serious problem of blind investing, which has great harm to the industry’s healthy developments and should be guarded against.


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