Evergrande Auto builds auto parts factory in Shanghai
Since Evergrande Auto is the owner of NEVS and thus the old Saab factory, the news from China is of interest. These are contradicting itself. Evergrande Auto publishes prices for vehicles that don't even exist yet and builds factories to manufacture auto parts. On the other hand, the NDRC is investigating.
Investigations by the NDRC
The powerful National Development and Reform Commission (NDRC) declared Evergrande Auto and Baoneng its subject last week Investigation. In both cases, the electric car business is being investigated; Baoneng had taken over Qoros, Evergrande NEVS and a number of European start-ups.
Evergrande's shares then went down 7%. Observers see the investigation as the Commission's endeavor to regulate the electric car business. Chinese manufacturers are building massive excess capacities.
But the situation doesn't seem to be that simple. At the same time, insider reports appeared in several online media about Evergrande Auto's difficulties in setting up production and the product range. They cast Evergrande and its entry into the electric car business in the most unfavorable light possible. The acquisition of NEVS and Protean is also being questioned
The truth of the representation cannot be checked, but that is not really important. Investigations and insider stories are a disturbing sign and, according to special Chinese rules, a real last warning shot.
You can only know what it's really about in China. Is it a regulation of the market, a warning to change course, or is it an impending end to Evergrande Auto's ambitions?
Auto parts factory in Shanghai
Unimpressed by any headwind, Evergrande Auto announced the construction of a new one last Friday Auto parts factory in the Songjiang District of Shanghai. Parts for 100.000 vehicles a year are to be built in the new plant. The Shanghai region is increasingly becoming the focus of Evergrande activities.
The start of series production for the second half of 2021 is also continuing. The further development in Sweden remains unclear. The silence since the end of the summer has been noticeably loud, even for NEVS.
2 thoughts on "Evergrande Auto builds auto parts factory in Shanghai"
... and it shows when the squad slides in it can jerk a lot. The party, not the economy, is pulling the strings. Like it (the party) or not, that is the question to be decided.
The state / business crime continues.
Unfortunately it is the case that SAAB-NEVS-EVERGRANDE deliver good thrillers and no cars, it would be nice the other way around!
Thanks for the information…
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