Yesterday, the Evergrande Auto Group met with suppliers and representatives of the regional authorities in Tianjin. Evergrande Auto, it is clear, will not be able to keep to the original schedule. However, the company still has its sights set firmly on the start of production, which is scheduled to begin at the beginning of next year. The manufacturer has now secured the support of its partners for this purpose.
Evergrande Auto relies fully on the NEVS plant in Tianjin, and bundles how there berichtet all powers. There will hardly be any financial help from the parent company, whose share (HK 3333) has been suspended from trading for days. Representatives from Tianjin Binhai New Area and the party pledged their help and financial support to get production started.
Various suppliers took part in the meeting, Evergrande Auto mentioned Robert Bosch GmbH, the Antolin group, Hitachi and the Hutchinson group. They all assured the timely delivery of parts, wrote Evergrande in a press release.
The development of Evergrande Auto is evidently becoming more and more detached from what is happening around the parent company. The share (HK 0708) is still in trading, but it is listed at a comparatively low level compared to previous highs. Meanwhile, China missed Evergrande for the third time in three weeks Payment dates and does not service the liabilities.
Other real estate developers in China with smaller market shares are following this negative trend and are also reporting problems with liquidity. Evergrande is not alone, the (homemade) bubble has not yet completely burst. The future of the auto division is still open.