Bankruptcy, auction! Many Chinese tire companies are coming to an end

Whether producing tires or selling tires, it is a business that requires a lot of capital to run. Once the capital circulation problem of tire enterprises cannot be solved, even the experienced enterprises who have gone through years will only have to go bankrupt.

With the shrinking market demand and the repeated epidemics, the upstream and downstream of tire sales are now experiencing an unprecedented “money shortage”.

Shandong Wanlitong tire assets auctioned by court

Recently, the Taishan District People’s Court of Tai’an City will publicly auction the land and factories under the name of Wanlitong Tire on its judicial auction network platform according to the content of the judgment.

The estimated value of the subject matter is about 10.53 million yuan, and the auction proceeds will be used to pay off the debt of Wan Litong tires.

It is reported that this is not the first time that Wan Litong tires have been “auctioned”. Last year, the Feicheng People’s Court in Shandong Province auctioned off the tire molds under the name of Wan & Litong.

Although corporate assets are frequently auctioned and there are more than 170 risk items on the corporate information website, Wan Litong is still in business, and its difficulty in operation is heartbreaking.

Lianyungang Liansheng Tire Bankruptcy Review Filed

Not only tire manufacturers, but also tire dealers are also in financial crisis.

Last week, the bankruptcy review case of Lianyungang Liansheng Tire Co., Ltd. was officially filed by the Haizhou District People’s Court of Lianyungang City, and the bankruptcy officially entered the countdown.

After investigation, after the company had a dispute with the bank over financial loans in 2018, it has been unable to find relevant corporate information since 2019. At the same time, it was listed as a dishonest person to be executed because it refused to perform its legal obligations.

Pay attention to the safety of funds in business operations

One is Shandong Wanlitong, which has been building tires for 17 years, and the other is Lianyungang Liansheng, which has sold tires for 16 years. One of the two tire companies is struggling to maintain the shortfall of funds, and the other has been overwhelmed by loan disputes.

The current situation is that no matter how senior the company is in the tire industry, if there is a problem with funds, it can only wait for the fate of being reshuffled. At present, the cost of enterprise operation is increasing day by day, and the market demand is decreasing day by day, the capital risk of tire business is still very large.

Therefore, both tire manufacturers and dealers must control costs first, and then consider how to open up the market. To avoid capital tension from turning into capital disconnection, and survive market shocks, we can continue to develop.

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