Cheers my Chana as Changan goes bust
But plans are in place to revive the Chinese manufacturer as soon as possible
HE LOCAL importers of Chinese brand Chana have gone bust, leaving almost 10 000 South African customers without any backup.
Changan South Africa was placed in final liquidation in the South Gauteng High Court after reportedly incurring a R90-million debt.
Former Changan SA chief executive Teresita van Gaalen said that the liquidation left about 25 employees in the distributorship business and about 100 in the supply chain and dealerships unemployed.
Chana entered South Africa in 2007 with a range of budget-priced cars and commercial vehicles, including the Benni hatchback and Star bakkie. The business ran into financial problems and was rescued in 2009 by the Johannesburg branch of China Construction Bank, with the distributorship taken over by Changan SA. Despite plans to build a local assembly plant, continuing high debt led Changan SA to apply for voluntary liquidation.
Van Gaalen said the liquidation wouldn’t lead to the collapse of all 23 Chana dealerships because “the problem had been festering for some time”
Tand dealers increasingly sourced parts from a Chinese supply chain across a number of brands.
She said the Chinese state-owned vehicle manufacturer Chana Auto Company (ChangAn) remained committed to the South African market and was “doing everything possible to re-start operations as soon as possible”.
In a statement ChangAn said it was trying its best to restore service levels and the supply of parts as a top prior- ity. “An emergency plan in progress will oversee the supply of parts and service is to be restored as soon as possible.”
The corporation confirmed it was seeking a new strong long-term partner and a stronger distributor for the brand in SA.
Chana owners who wish to know where they can service their vehicles can email Changansainterim@gmail.com for more information.