'Big guy' auctions 2,071 cars

After many times of lowering the starting price of the auction but still not selling well, the cars were left exposed to the sun and rain in Thanh Hoa, this time VEAM Automobile Factory is selling 2,071 cars that have been in stock for many years with a starting price of 430.6 billion VND.

Recently, Vietnam Auction Joint Stock Company announced the auction of 2,071 cars authorized by VEAM Automobile Factory - Vietnam Engine and Agricultural Machinery Corporation - JSC.

The total starting price of the entire batch of cars (excluding VAT) is nearly 430.6 billion VND, a significant decrease compared to previous auctions.

Notably, in the invitation to participate in the auction of 2,071 cars manufactured and distributed by VEAM Automobile Factory, it clearly stated: "These are inventory cars of VEAM Automobile Factory - Vietnam Engine and Agricultural Machinery Corporation - JSC in Thanh Hoa".

VEAM Automobile Factory is selling 2,071 remaining cars. Photo: Le Duong

Although it is an inventory, VEAM Automobile Factory emphasizes that the specifications and quality of the vehicle are equivalent to the typical model, with a warranty period of 12 months or 30,000 km from the date of delivery to the auction winner, whichever comes first.

This auction, 2,071 cars will be divided into 755 lots.

Accordingly, the starting price of each car lot is according to the detailed price list of auctioned assets attached. For the VT158 and 15-seat passenger cars, the starting price does not include special consumption tax.

Costs related to transportation, relocation of assets and other related costs shall be borne by the winning bidder.

For vehicles that win the auction without a body or battery, the auction winner will install a body and battery according to the manufacturer's standards, specifications, and standards.

The number of vehicles will be delivered in multiple times as determined by VEAM but not exceeding the time according to the detailed information table of the auctioned assets shown in the auctioned asset sale contract. The auction winner must pay 100% of the value corresponding to the number of vehicles delivered each time in VND.

Previously, according to VietNamNet, thousands of brand new assembled cars of VEAM Automobile Factory were put up for sale many times but still could not be sold. VEAM's leadership said that they are determined to clear inventory openly and transparently according to market mechanisms, avoiding waste and maximizing capital recovery for the business.

In 2000, Vietnam Engine and Agricultural Machinery Corporation (VEAM) planned to invest in an automobile manufacturing and assembly plant in Thanh Hoa, with a capital of about 350 billion VND. However, this project was later adjusted by purchasing an entire old factory of Samsung Group (Korea).

Thousands of VEAM cars have been left exposed to the sun and rain at a parking lot in Thanh Hoa for many years. Photo: Le Duong

According to VEAM's report dated May 7, 2019 sent to the Board of Directors and Board of Supervisors, by the end of 2018, the total investment capital transferred by VEAM to this automobile factory project was up to nearly 2,000 billion VND and accumulated loss was 343 billion VND.

Inventory as of December 31, 2018 was 2,950 vehicles, of which 2,355 were vehicles manufactured before 2017 (Euro 2 emission standards) and 219 were vehicles manufactured before 2015.

Photo: Le Duong

VEAM has invested thousands of billions to produce cars, but the company's report shows that cars produced many years ago are still in stock, unsold.

There are a total of 2,622 VEAM brand vehicles in stock, with a cost price of over VND966 billion. Of which, there are 2,221 vehicles in stock from 2017 or earlier with a cost price of VND878 billion.

Since 2021, VEAM has put this batch of vehicles up for auction many times but for many reasons has not been able to "liberate" them.

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Source: https://vietnamnet.vn/ong-lon-dai-ha-gia-2-071-xe-o-to-sau-nhieu-lan-ban-dau-gia-e-am-2435626.html