China's debt-laden Evergrande produces its first car

China's property giant Evergrande began production of its first electric car in the northern city of Tianjin on Friday, a subsidiary of the group announced.

Despite fighting for survival with an enormous debt of an estimated $260 billion, Evergrande is active in several sectors and has high hopes for the automotive market.

The group "is pleased to announce that the mass production of Hengchi 5 will commence on 16 September", Evergrande Auto said in a statement, adding that the first deliveries will be made from October.

Founded in 2019, the subsidiary Evergrande New Energy Vehicle Group has spoken of its ambition to rival the American manufacturer Tesla, giving itself "three to five years" to become the world's "most powerful" player in the electric car sector.

But the firm has fallen behind in designing and marketing its vehicles, exacerbated by major cash flow problems, and the launch of the Hengchi 5 SUV was postponed several times.

Evergrande, one of China's biggest developers, has scrambled to offload assets in recent months and its financial situation has worsened considerably since last year.

Its troubles are emblematic of the problems rippling across China's massive property sector, with smaller companies also defaulting on loans and others struggling to raise cash.

The giant was originally due to unveil a restructuring plan in July, but the announcement was postponed to an unspecified date.

China's electric car market is particularly competitive, with manufacturers jostling to take advantage of an industry boosted in recent months by generous purchase subsidies from local governments.

sbr/ehl/je/lb

China Evergrande Group

TESLA MOTORS

Related Links
Car Technology at SpaceMart.com

Tweet

Thanks for being there;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Monthly Supporter
$5+ Billed Monthly

paypal only

SpaceDaily Contributor
$5 Billed Once

credit card or paypal

Biden tours Detroit Auto Show, highlighting electric vehicle push
Detroit (AFP) Sept 14, 2022
Fresh off recent legislative victories, President Joe Biden touted an electric auto future Wednesday as the new-generation models shared the stage with gasoline at a revived Detroit Auto Show. "The great American Road Trip is going to be fully electrified," Biden proclaimed after test-driving one auto during a gleeful spin through showroom floor. "When you're driving coast to coast along I-10 or on I-75 here in Michigan, charging stations will be up and easy to find as gas stations are now." ... read more