In order to continue its activity, Evergrande New Energy Vehicle would need the equivalent of more than 4 billion dollars. If he does not get this money, the group risks stopping production.
Rumors of financial difficulties and a possible acquisition of Evergrande’s auto arm by another automaker have flourished lately. In December 2022, the group was forced to suspend series production of its only model, the Hengchi 5, officially due to a lack of orders.
A debt of 300 billion dollars
Founded in 2019, the electric vehicle division of the Chinese real estate group aimed to compete with the American manufacturer Tesla. The subsidiary thus gave itself “ three to five years “to become the group” the most powerful in the world in the field of electric cars. But to date, only 900 vehicles have been sold – compared to nearly 75,000 in February alone for rival Tesla. And the generous public subsidies, from which the group had benefited at the start, ended at the beginning of the year.
The real estate conglomerate Evergrande, which owes some $300 billion to its creditors, offered them stakes in two of its many subsidiaries in exchange for its this. Its fragile branch of electric vehicles might well be affected by this offer.
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