Why Did Xiali Cars Disappear from the Automobile Market?

[BrielleMarie]

Here are the reasons for the disappearance of Xiali Cars: 1. FAW Xiali was almost insolvent. FAW Xiali had poor operating conditions and issues like industry competition. 2. Weak core competitiveness. The company lacked sufficient understanding and forward-looking research on the domestic automobile market. Issues such as weak product development, marketing capabilities and awareness, and brand-building abilities led to its failure to keep up with the rapidly changing demands of the automobile market's consumption upgrade, especially against the backdrop of a rapidly shrinking economy car market. 3. Risk of negative net assets. The company had low net assets. If the company's operations did not improve effectively in 2018 and continued to incur losses, there was a risk of negative net assets.