Evergrande NEV still stuck in financial difficulties
Evergrande New Energy Vehicle, the electric car division of Chinese real estate group Evergrande, is apparently still in trouble and could be taken over by another carmaker. According to the report, first suppliers are already insisting on full payment before delivery.
According to local media, Evergrande NEV has only produced around 200 units of the first Hengchi 5 model more than half a year after the start of production and has now had to stop production due to a shortage of materials. When the Hengchi 5 went on pre-sale in July 2022, it was still said that the first 10,000 vehicles would be completed by the first quarter of 2023.
Suppliers are reluctant to work with the electric car division of the debt-ridden real estate group, according to an insider, demanding that it pay invoices in full upfront. Evergrande NEV is likely to be acquired by another automaker in a move led by the Chinese government, according to insiders.
Whether a takeover will happen, however, is an open question. Many in the industry had also expected Byton to be taken over immediately after its bankruptcy – like Evergrande NEV, Byton had already started production and was considered an attractive takeover target. In fact, the assembly lines at the Byton plant are still at a standstill.
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