The decline of Yangcheng Automobile was related to the then Notice of the State Council on Strict Control and Approval of Cars and Light Vehicles. Just when Yangcheng Automobile was ready to do something with great fanfare, this notice completely stopped Yangcheng Automobile. Later, Yangcheng Automobile got into a contract dispute with Honda, which completely led to the demise of Yangcheng Automobile. Guangzhou has been known as Yangcheng since ancient times. Yangcheng Automobile is located in Yuexiu District, Guangzhou, formerly known as Yuexiu General Machinery Factory. Now I can't find what the earliest Yangcheng automobile factory looks like. We only know that Yangcheng Automobile Factory is one of the earliest automobile enterprises with automobile chassis production qualification. Initially, it mainly produced the chassis of passenger cars and trucks. Later, through technical transformation, Yangcheng Automobile began to produce all kinds of light trucks.

In this technical transformation, Yangcheng automobile has developed rapidly. The light trucks they produce are very popular in the market, and their market share is also rising. It is said that Yangcheng Automobile had more than 3,000 employees when it was brilliant, with an annual output of more than 20,000 vehicles. You know, the car ownership at that time was not as high as it is now. The executives of Yangcheng Automobile saw the development of the whole market, so they raised funds in various ways and cooperated with Honda to launch the fifth-generation Accord with domestic technology.

However, they did not expect that the national policy had quietly changed. Just when Yangcheng Automobile was full of ambitions, the State Council issued the Notice of the State Council on Strictly Controlling the Examination and Approval of Cars and Light Vehicles. In this way, Yangcheng Automobile's plan to build a car was brought to a standstill, and the previous investment was in danger of losing money or even collapsing. Although the company team has repeatedly negotiated with the government, the results have all come to nothing.

At this time, the partners are also embarrassed by Yangcheng Automobile Company. Honda felt that he had been cheated in this cooperation, so the two sides were angry with each other and constantly accused each other of making things difficult in the contract. Yangcheng Automobile has a close cooperation with Honda, and the original project has stagnated. Although the car policy has been loosened in the next few years, Honda has already found another lover. After years of consumption, Yangcheng automobile has long been hollowed out and finally forced to sell itself.