Why Did Zhidou Cars Stop Production?

[RowanLee]

Zhidou cars ceased production due to poor management, severe financial losses, cash flow issues, and deep debt crises. The company subsequently faced controversies involving layoffs, unpaid wages, debts, and lawsuits. Since September 2019, it has remained in a state of halted production. More details are as follows: 1. Zhidou was established at the end of 2005, with its first product launched in 2013. Perhaps because pure electric vehicles were too novel a concept at the time, awareness and acceptance were insufficient both in China and globally, leading to poor market penetration. Heavy investments without corresponding sales pushed Zhidou into its first life-or-death crisis. 2. Unable to obtain vehicle manufacturing qualifications, Zhidou had to collaborate with Zotye, limiting their partnership to using Zotye's qualifications and producing under its brand. However, the 'Zotye Zhidou' model appeared on the market for only a year before Zotye independently pursued its new energy vehicle business. 3. From Zhidou's development trajectory, while seeking a way out, it largely aligned with national policy directions. However, over-reliance on subsidies for survival without sufficient funds for R&D ultimately led to its current predicament.