A Mercedes-Benz S600 offers faint reminder of a once high-profile Chinese smartphone brand

A Mercedes-Benz S600 was auctioned on Alibaba’s Taobao marketplace as part of bankruptcy proceedings earlier this month, offering the faintest of reminders of a once-high profile Chinese smartphone brand, which collapsed abruptly under the weight of unpaid debts brought on in part by its founder’s gambling habit.

The luxury car was one of 18 cars owned by Gionee, the Shenzhen-based smartphone manufacturer founded by Liu Lirong that filed to be wound up in December. Fourteen of the fleet were sold for a combined 4.15 million yuan (US$600,000) during the 24-hour auction that closed at 10am on May 10, according to data from the Taobao marketplace. The S600 car attracted 186 bids and sold for 2.1 million yuan, 40 per cent higher than the starting price.

At its peak in 2016, Gionee sold about 40 million smartphones a year and ranked among the top 10 brands in China. Its mid-budget handsets were popular among consumers in the country’s smaller cities and also sold in Southeast Asia, competing with the likes of Oppo and Vivo. But while the latter have thrived, Gionee is no more.

Liu was known for signing up celebrities like Andy Lau Tak-wah to endorse its products. He was to become even more known for a gambling habit that reportedly contributed to the demise of the manufacturer. Attempts to reach Liu for comment through Gionee’s former representatives were unsuccessful.

The end came last year when suppliers stopped selling it components after failing to receive payment for several months. Production ceased as a result, adding to the weight of unpaid debts. In December, a Shenzhen court accepted Gionee’s application for liquidation. The company reportedly owed some 20.2 billion yuan (US$3 billion) to creditors.