According to U.S. Automotive News, the U.S. auto dealer HAAH Automotive (hereinafter referred to as “HAAH”) has announced plan to suspend the import of Zotye’s products. It is reported that in November 2018, Zotye Automobile and HAAH jointly established Zotye Automobile America, and planned to officially sell models in the United States in 2020. In the previous agreement, before Zotye officially launched its sales business in the United States, both parties needed to provide millions of dollars of certified investment. However, based on the current Zotye’s operating situation, HAAH is not willing to take risks to invest.
Duke Hale, CEO of HAAH, said: “In view of the current status of Zotye in China, this company should first focus on the Chinese business before considering expansion into the US market. At this stage, it does not make much sense for the two parties to spend so much money to sell Zotye models in the United States. We will consider further progress in the agreement until Zotye’s situation improves.
According to the previous financial information released by Zotye, in the whole year of 2019, this company achieved operating income of approximately 3.204 billion yuan, a year-on-year decrease of 78.3%; the net profit attributable to shareholders of listed companies was loss of 9.294 billion yuan, a year-on-year decrease of 1261.96%; In the first quarter, Zotye Auto achieved operating revenue of 209 million yuan, a year-on-year decline of 94.71%. The net profit attributable to shareholders of listed companies was negative 417 million yuan, a year-on-year decrease of 494.1%. Within 15 months, Zotye Auto, which was once a hit, suffered a loss of nearly 10 billion yuan.
HAAH said that although the plan to import Zotye Automobile is temporarily suspended, it will not affect the company’s cooperation with other Chinese brands. In the future, this company will focus on cooperation with Chery Automobile. It is reported that on February 11, HAAH and Chery Automobile officially started business cooperation. The former will register and operate a new brand “VANTSA”. The brand model will be based on Chery Automobile’s EXEED brand products as a prototype, according to North American regional regulations and market needs. Adaptive development, and will be sold to the United States and Canada in the future.
