The capital investment is relatively large.
In March 2019, UCAR acquired Borgward Auto for 4.11 billion yuan. In addition to purchasing Borgward Auto at a large price, UCAR has also injected funds for large-scale blood transfusion transformation to create a “new automobile retail model.” But I am afraid UCAR did not expect that the so-called “new car retail” has once again plunged into a loss.
In addition to poor performance, UCAR was also in a dilemma of violent layoffs last year. According to reports, in the first half of 2019, the number of UCAR employees in China decreased by 40%.