Even if it seems superficially calm - Evergrande is expanding at full speed. The only strange thing is that the European media have so far hardly taken any notice of it. Which may be because it will take some time before the first products come off the line. However, some companies are already feeling the first effects of expansion. Evergrande is causing turmoil on the job market in an 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.
Evergrande may take some speed out of its expansion. Xu Jiayin's company is building capacities of 1 million electric vehicles a year. That may be visionary - or very brave. Sales of battery electric cars in China are not developing as forecast. After some of the subsidies are no longer available, buyers remain cautious. Establishing a market with countless billions in subsidies when the right product and the willingness to buy are missing does not seem to be possible even in a state-controlled 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. Over the year, one hopes for 40 - 50.000 vehicles. Which is still far from Evergrande's million dollar plans.
Dislocations in the labor market
The expansion of the Evergrande Group and the Chinese hunger for batteries are worrying Korean battery manufacturers. The Chinese, but also the Northvolt / VW joint venture, are recruiting specialists for research and development. They pay up to three times higher wages as an incentive, and manufacturers from Korea and Japan suffer from this, 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.