2023-05-26 20:49:31
On May 25, 2023, Great Wall Motor issued a statement stating that it had reported to the authorities that two BYD models were suspected of failing to meet pollutant emission standards. The picture shows BYD Auto at the 2022 Central China International Auto Show. (Getty Images)
[The Epoch Times, May 27, 2023](Comprehensive report by Epoch Times reporter Li Jing) The two major Chinese car companies are pinching each other, bringing disaster to the entire industry. Great Wall Motor reported BYD in its real name on Thursday (May 25), which crashed the stock prices of the two car companies at the same time in the afternoon. On the morning of the 26th, the overall market of auto stocks was sluggish, and the stock prices of Great Wall Motor and BYD continued to plummet. Affected by this, the market value of the two auto companies evaporated a total of 66.4 billion yuan.
According to comprehensive mainland media reports, since the exposure of the whistleblowing incident, the stock prices of Great Wall Motor and BYD both plunged. As of 10 o’clock on the 26th, Great Wall Motor’s A shares fell by 4.68%, and BYD’s A shares fell by 3.88%. (Both car companies are listed on A+H shares. Since the Hong Kong stock market is closed today, the H-share battle situation is temporarily not counted.)
Calculated from the stock price: Since Great Wall Motor released the report statement on its official Weibo at 10:40 on May 25, as of 10:00 on May 26, Great Wall Motor’s A shares fell by 9.41%, and BYD’s A shares fell by 5.97%. From the perspective of decline Look, BYD wins.
However, due to the large gap in market value between the two, BYD’s market value is much higher than that of Great Wall Motors. From the perspective of market value, during this period, BYD’s A-share market value evaporated by 45.483 billion yuan (RMB, the same below), and Great Wall Motor’s A-share market value evaporated by 20.885 billion yuan. The market value of the two auto companies has evaporated by 66.4 billion yuan.
The “war” between the two major Chinese auto companies has also affected other auto stocks. The auto index fell nearly 2.8% on the morning of the 26th.
Dongli Machinery, Demax, Huawei Technology, and Jintuo shares fell by more than 5%, while Zhongtong Automobile, Jianghuai Automobile, Yaxing Automobile, and Ankai Automobile all experienced declines to varying degrees.
Part of the reason for the continuous volatility of China’s stock market is that on May 25, Great Wall Motor Co., Ltd. (hereinafter referred to as “Great Wall Motor”) issued a statement stating that on April 11, it notified the Ministry of Ecology and Environment, the State The Ministry of Information Technology and the Ministry of Information Technology submitted reporting materials to report on the issue that Qin PLUS DM-i and Song PLUS DM-i, two models of BYD Co., Ltd., use atmospheric fuel tanks and are suspected of failing to meet the standards for evaporative pollutant emissions from the vehicles.
In response to the reported matter, BYD urgently issued a statement, saying that it firmly opposes any form of unfair competition and reserves the right to legal proceedings. BYD believes that the above test report is invalid, emphasizing that its products and related tests meet national standards.
According to BYD, Great Wall said that the test vehicles were purchased, kept and arranged for inspection by Great Wall, and China Automobile Center (Tianjin) carried out the inspection of relevant items according to the requirements of Great Wall. BYD believes that its test report is invalid, and Great Wall cannot use it as a basis.
The basis for the report by Great Wall Motors lies in the “Light Vehicle Pollutant Emission Limits and Measurement Methods (China Phase Six)” (GB 18352.6-2016) implemented on July 1, 2020. This mandatory standard sets certain requirements on evaporative emissions of volatile organic compounds from vehicles. Some media quoted the interpretation of industry insiders, saying that due to the short engine running time of plug-in hybrid vehicles during driving, there are few opportunities for the canister to be flushed, so the oil and gas in the canister cannot be fully flushed in time, thereby increasing the flow of oil and gas from the canister’s atmospheric port. Risk of spillage.
It is understood that the normal pressure fuel tank is relative to the high pressure fuel tank that can withstand higher pressure. There is a possibility of volatilization of fuel in this type of ordinary fuel tank. The fuel is connected to the carbon tank, the gaseous fuel is absorbed by the carbon tank, and the gaseous fuel can enter the combustion chamber to do work after the engine is started, thereby adjusting the pressure of the fuel tank and reducing fuel waste. At present, many plug-in hybrid vehicles use high-pressure fuel tanks. Some media quoted industry insiders as interpreting that high-pressure fuel tanks can reduce evaporative emissions, but the cost is higher.
Another person in the automotive industry said that evaporative pollutant emissions may also cause poor sealing of the fuel tank. In addition, insufficient fuel supply from ordinary fuel tanks, thin air, and high air concentration may also cause the fuel to not be completely absorbed and affect the driving of the vehicle.
Many industry analysts believe that it is rare for automakers to report technical problems of competitors. Great Wall may have done a lot of work in reporting BYD, otherwise the risk of casually infringing on the reputation of competitors is also great.
In fact, it is not the first time that Great Wall Motor has named its peers.
Great Wall Motors had previously named automakers such as Geely and Changan due to “black public relations” and other issues, but this is the first time that it has reported product issues.
According to public information, Great Wall Motor Co., Ltd. is the largest collectively-owned automobile manufacturing enterprise in China, and the company has a shareholding of a Chinese state-owned enterprise.
Great Wall Motor Co., Ltd. recently released a financial report showing that in the first quarter of this year, the company’s sales fell by 22.41% year-on-year. Last year’s sales fell 16.66% year-on-year. The company’s market value has now shrunk by more than 300 billion yuan from its 2021 high. In addition, Chinese electric car giant BYD was once again reduced by a company owned by the famous investor Warren Buffett earlier this month. This is the 11th time since last August that the company has reduced its holdings.
“Mutual fighting” incidents occur frequently in various industries in China
In recent years, various industries in China have been fighting each other. Prior to this, there was also a reporting incident between Gree and Oaks.
On June 10, 2019, Gree Electric released the “Report Letter on the Production and Sales of Unqualified Air Conditioning Products by Oaks Air Conditioning Co., Ltd.” According to Gree Electric, according to the actual measurement by the Gree Electric Laboratory, there is a big gap between some models of Oaks air-conditioning products and their advertised and nominal energy efficiency values.
Gree Electric said that after the inspection and verification by a third-party agency with professional qualifications entrusted by it, the test conclusions were consistent with those of Gree Electric Appliances, and the test conclusions of energy efficiency ratio and cooling power consumption were all unqualified.
Gree Electric and Oaks have repeatedly sued each other for infringement of invention patents, and the two sides also “digged the wall”.
In the Internet industry, it is also a “life and death”, such as the dispute between Tencent and ByteDance.
According to Lu media reports, there are as many as thousands of legal disputes involving Tencent and ByteDance affiliated companies, involving tens of millions of yuan. Disputes over broadcasting rights, etc., the results of the case judgments have their own winners and losers, and involve the withdrawal of the plaintiff and the partial support of the court.
The battle between the other two major Internet companies is full of drama.
Alibaba’s “Ele.me” platform sued Sankuai Company, which operates the “Meituan Waimai” platform, claiming that its cross-platform merchants’ promotions on the “Meituan” platform were canceled and the delivery range was modified. Unable to search normally, merchants are forced to use exclusive services.
JD.com launched a public opinion war against Alibaba because Alibaba chose one of the suppliers during the “Double Eleven” event. It believes that this practice by Alibaba’s Taobao has disrupted the market balance to a certain extent and also damaged JD.com. Interests.
Several years after this public opinion war raged, Alibaba was fined nearly 20 billion yuan by the authorities for “choosing one of the two”.
The Chinese Communist Party’s crackdown on the Internet industry has expanded the scope of China’s economy.
In 2020, the CCP authorities launched an unprecedented “anti-monopoly investigation” against Internet companies, and frequently issued fines, warnings, and interviews to Internet companies such as Alibaba, Tencent, and Meituan. Since then, the scope of the CCP’s official rectification has continued to expand.
Under the strict supervision of the authorities, as well as the influence of factors such as the “zero-clearing” epidemic policy, the Chinese economy has suffered a severe impact. The Internet and other industries have entered the cold winter, and many giants have exposed large-scale layoffs one after another.
Responsible editor: Sun Yun#
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