Ideal Auto CEO calls on Chinese policymakers to establish mechanisms to facilitate mergers and acquisitions among auto companies amid wide-ranging discussions on Kaohe's shutdown。

(Ideal Car Founder, Chairman and CEO Li Xiang Video Speech Screenshot。）

Li Xiang, founder, chairman and CEO of Ideal Auto (NASDAQ: LI), called on Chinese policymakers to establish a mechanism to promote mergers and acquisitions of auto companies amid widespread concern over the shutdown of the Chinese Express's Gaohe HiPhi brand.

"It is time for the country to establish and guide a system for mergers and acquisitions of auto companies, including qualification-related issues," Li wrote on Weibo today.。

Earlier today, car blogger Yuan Qicong shared a picture on Weibo showing someone selling HiPhi Y. The official starting price of the car is 339,000 yuan (47,150 US dollars), and the price is only 199,900 yuan.。

The blogger said that if a b Rand Corporation has an obvious survival crisis, then even if its vehicles are cheap, they should not be purchased。Lee shared his views when retweeting the blogger's post。

li said many new brands may encounter operational and financial problems next, although these are all the result of reasonable market competition。

If the social loss from a merger or acquisition due to mismanagement is 10, the loss from a shutdown is 100, he said.。

li pointed out that the big three of the united states was the result of intense competition and merger among hundreds of automobile companies at that time。

Li used Ideal's acquisition of Hyundai Motor's Beijing No. 1 plant as an example of what social value it would bring to revive a long-discontinued auto plant。

Lee said the plant, which has a production beat of 45 JPH (number of jobs per hour), will need about 4,500 employees to operate at full capacity.。

To support the plant, suppliers at all levels need to provide six times the number of jobs, which is common in the global automotive industry, and China may need more, Li said.。

As a result, a car factory could add 30,000 stable jobs, he said.。

Such factories can add more than 100 billion yuan of economic output value after full production.。"The healthy growth of the total economy is the blood of modern society.。"Lee said。

at the same time, the plant can contribute more than 10 billion yuan in taxes, li said, adding that these taxes will become the basis for education, social security, infrastructure construction and economic development。< / p >

"So I think it is very important to establish a sound merger and reorganization mechanism for auto companies."。"He concluded。

Ideal Cars Current models - Ideal L7, Ideal L8 and Ideal L9, all of which are extended-range electric vehicles (EREV) - are produced at its factory in Changzhou, Jiangsu Province。Tough China。

The company took over Hyundai Motor's first plant in Beijing's Shunyi district and began a revamp in October 2021.。According to previous government announcements, the plant will have an annual production capacity of 100,000 pure electric vehicles when it goes into production.。

Ideal Cars will launch its first pure electric vehicle (BEV) model on March 1 - the Li Mega MPV (utility vehicle)。

The Beijing municipal government said yesterday on its WeChat public account that city leaders visited the Ideal Auto Beijing plant, which will begin mass production in March。

(Li wants to accompany Beijing officials to visit Ideal Auto's Beijing plant。）

($1 = RMB 7.1897)