Although it seems superficially quiet, the expansion of Evergrande is going strong. Strange is only that the European media hardly took notice of it so far. What may be that it will take some time for the first products to come off the production line. The first effects of the expansion, however, are already felt by some companies. Evergrande is causing industry upheavals in the industry.
Pininfarina design for Evergande
On the 19. September visited Xu Jiayin Magneti Marelli and Pininfarina. The automobile expansion seems to be a matter of chief concern, relatively clear is the reason of the visit, when talking about Magneti Marelli speaks. The Marelli Group is one of the major suppliers in the international business when it comes to automotive components. By contrast, the visit to Pininfarina could be speculative. One of the finest old addresses in Italy when it comes to quality design. At the same time a hot name, which also starts to expand. Since its acquisition by the Mahindra Group, the company is in Indian hands, the owners appreciate the magic of the name. Under the legendary Pininfarina logo, a manufacturer of exclusive high-performance electric cars is being developed.
In doing so, you rely on experienced employees. Jochen Rudat, longtime German Tesla boss, joins the 1. October to Milan and will lead the sales department. Evergrande also relies on the fine address. Pininfarina, Yicai Global reports via Twitter, will deliver the design for the new Evergrande Group vehicles.
A factory in Quingdao?
Another electric car factory could be the Evergrande Group in Quingdao. The city was already talking 2013 and 14, then it was still about one Saab factory, Evergrande has that reporting Caixin, in the spring 2019 400 acres of land reserved. In addition to a factory for electric cars should also be a production of batteries in the surrounding area. The project seems to be on hold, contracts have not yet been signed.
Eventually, Evergrande will take some speed out of its expansion. The company of Xu Jiayin builds capacities of 1 million electric vehicles a year. That may be visionary - or very courageous. Sales of battery electric cars in China are not developing as predicted. After the elimination of part of the subsidies, buyers remain restrained. Establishing a market with countless billions of subsidies when the right product and buyer wills are lacking seems impossible, even in a state-run economy. A lesson that Europeans should also consider with subsidies for electromobility.
Current example is NIO. The most successful domestic brand for electric cars sold in the August 2019 in China 2.976 units. Expected over the year, one hopes for 40 - 50.000 vehicles. Which is still a long way from the million plans of Evergrande.
Dislocations in the labor market
The expansion of the Evergrande group and the Chinese hunger for batteries are troubling Korean battery manufacturers. The Chinese, but also the Northvolt / VW joint venture, recruit specialists for research and development. They pay incentives up to three times higher wages, including the producers from Korea and Japan, reports the Korea Times, The race for the most qualified employees is running, there is a catch up to catch up. Not only at Evergrande, but also in Europe.