Evergrande and NEVS rely on proven service providers when it comes to the development of the future model range. In the next 5 years, 15 will be launching new vehicles. Starting with luxury sports cars via autonomous pods to the middle class. The former Saab factory in Trollhättan will produce part of the vehicles, as they are safe in Sweden. And an advertising coup will make the Evergrande brand Hengda Hengchi soon also the Europeans tasty.
On the 25. In September, Evergrande CEO Xu Jiayin announced the comprehensive one in Shenzen Cooperation with the big names of automotive development service providers. The German providers FEV and IAV Group, the German-Swiss EDAG AG, the Austrian AVL and the Magna Group The vehicles will be developed for the Evergrande Group.
Avoid mistakes, accelerate development
Is European-dominated cooperation surprising in a big way? Hardly, because with all the still open questions Xu Jiayin proceeds logically. He grabs the problems of Chinese carmakers at the roots and learns from the mistakes of others. Why do electric cars in China, despite fabulous subsidies over a very long period of time, have low acceptance among buyers? Chinese products are considered unreliable, not mature, they have a shockingly low value than used. The China Passenger Car Association itself coincides devastating judgment, After just one year, a Chinese product is worth less than half its original price. Its batteries are at the end after 3 - 5 years.
To succeed, it must be different. Electric car pioneer Tesla once again sets the benchmark. Its products are residual value giants, the batteries are assumed a long service life. Xu Jiayin accesses the best service providers available in the market. providers Like the Magna Group, German vehicles are also developing complete vehicles right down to the last screw. Only this is rarely published openly. The customer himself does not notice, he has no idea that his premium vehicle carries a big name, but was developed elsewhere. Crucial for the product is what is required in the specifications.
Enough work for Trollhättan
Once again, Evergrande accelerates the process of product development, minimizing its risks as a new brand and pressure to build its own research and development capacity. That Xu Jiayin does not rely on the rudimentary developer troupe of NEVS, is understandable. On the one hand Trollhättan does not have the required capacity in the beginning, on the other hand one could not develop a single product in more than 7 years to the production maturity.
Sad about the Göta Älv is not at all. You are in the old Saab factory for sure, to be allowed to produce part of the new models. In addition, one notifies NEVS not to be able to recruit as many workers as needed. Strategically, the location has an outstanding importance. It guarantees secure access to markets of the European Union, in case of doubt even exports to North America. As the only plant outside the People's Republic, it is of inestimable value for Evergrande's plans.
Evergrande advertising coup with Inter Milan
Because China is not enough. The international campaign for the Evergrande brand Hengda Hengchi starts at 2021. As a matter of fact, Hengchi Automobile will replace the Pirelli brand with Inter Milan's jerseys. The negotiations should be well advanced, 100 million € in 4 years to invest Xu Jiayin in advertising. The European market is the goal, presence in prime time and in front of an audience of millions would be guaranteed the brand. This also makes it clear when the first vehicles are planned for Europe. How breathtakingly fast Evergrande precedes is clear in one small detail: the last one press report For the first time there were also established portals in German language. The NEVS troupe in Trollhättan had never done that in 7 years.
Would that be the question of what role NEVS and the Saab heritage will play in the future? Chinese companies have a penchant for subbrands. Hardly any provider from the Middle Kingdom can resist the temptation, again and again arise new brands for various claims. Also Volvo's mother Geely plays with it; in addition to Lynk & Co and Polestar, a new brand for electric cars in the premium segment of the marketing machine was recently born. The fact that it could cannibalize the daughter Volvo, does not seem to matter.
Hengchi as a brand for Europe?
Everything is conceivable at Evergrande. There could be a brand name for Europe beyond Hengda Hengchi. NEVS could deliver it, but it could as well be dismounted from the factory. Because he comes from the marketing mill and has no historical value or reference to the history of the work. Vehicles with Saab DNA could come onto the market, the legendary design line could be continued.
Or not. Everything stays open at the moment.
For in addition to the big picture, the founding of a mobility company with the apparent benevolence of Beijing, there is also money for personal vanities, such as the collection of exotic brands. Otherwise one would have acquired no shares in the supercar manufacturer Koenigsegg.