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 will run out 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
Evergrande accelerates the process of product development once again, minimizes its risks as a new brand and the pressure of having to build up its own capacities in research and development. It is understandable that Xu Jiayin does not rely on the rudimentary development team from NEVS. On the one hand, Trollhättan does not have the required capacity, on the other hand, it has not been possible to develop a single product for series production in more than 7 years.
Sad about the Göta Älv is not at all. You are in the old Saab factory for sure, to be able to produce some of the new models. In addition, NEVS informs that it cannot recruit as many workers as is needed. The location is of great strategic importance. It guarantees secure access to markets in the European Union, and in case of doubt even exports to North America. As the only work 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, Xu Jiayin is to invest € 100 million in advertising in 4 years. The European market is the target, the brand would be guaranteed presence at prime time and in front of an audience of millions. This also makes it clear when the first vehicles are planned for Europe. How breathtakingly fast Evergrande is going can be seen in a small detail: The last press release was also available in German for the first time via established portals. The NEVS troop in Trollhättan had never managed that in 7 years.
There would be the question of what role NEVS and the Saab legacy will play in the future. Chinese companies have a peculiar tendency towards sub-brands. Hardly any supplier from the Middle Kingdom can resist the temptation, new brands are constantly emerging for various demands. Volvo's mother Geely also plays with it; In addition to Lynk & Co and Polestar, a new brand for electric cars in the premium segment has recently been born from the marketing machine. It does not seem to matter that one could cannibalize the subsidiary Volvo with it.
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.