The Analysis On Formulation And Implementation Of XX Motor Factory Restructuring Programme

In the early 1990s, the Third Plenary Session of the 14th Central Committee of the CPC was held. It marked the system reform in state-owned enterprise entered into an innovation stage. With the advance in the economic system reform, market economy was established basically. There was a growing demand for the pace of reform in state-owned enterprise. Under the grim situation in the international and domestic, innovation in the system reform became an urgent requirement of state-owned enterprise. After it experienced decentralization and interest concessions, substitution of tax payment for profit delivery and contract-system, it accumulated a lot of valuable experience and achieved remarkable performance. But the operating condition was still not good, and there were many deep-rooted problems and contradictions.This paper was based on the case that the GX company merged the XX motor factory, and then successful restructured it. The paper described how to balance the interests in the state, enterprise and workers, and how to spend smoothly the difficult period in the process of state-owned enterprise restructuring.Firstly, the paper described various factors in the restructuring, such as, 1,related policies of the state-owned enterprises reform from the government and state enacted, and the deadline for preferential policies to promote local state-owned enterprise restructuring. 2,serious problems left over by history in the enterprises, insolvency, aging management system, and market shrinking. 3,many unpredictable and irresistible factors in the process of restructuring which led to failure and which affected the stability and development of enterprises , even social stability and harmony. Secondly, it made a decision that the restructuring in XX motor factory is necessary and urgent by using the SWOT analysis. Thirdly, by using the theory and model of enterprise reorganization and restructuring, the paper chose a restructuring model of bearing debt after combining the present circumstances. Finally, this paper detailed the programme and implementation steps. The characteristics and innovation of the programme was that it applied the conversion model of debts used among enterprises to the assets of state-owned enterprises restructuring. It stripped XX motor factory huge debt effectively which had many questions left over by history, and was out of debt ,returned the market.