WM Motor has filed for bankruptcy. In a statement, the maker of the W5 all-electric SUV said that it will adjust its corporate strategy and keep communicating with relevant parties to resolve financial and debt problems.
Last June, the local government of Wenzhou helped put WM Motor back on its feet, helping them resume production while also trying to find them a more suitable long-term partner. That partner, Apollo Future Mobility Group, walked away from buying out WM Motor for USD 2.02 billion citing financial market uncertainty and China’s uneven economic recovery.
This has triggered WM Motor to file for bankruptcy.
“WM Motor’s planned reorganization will introduce strategic investors from across the globe to achieve its rebirth,” the company said.
For their part, WM Motor Philippines, represented by EVOxTerra says they are fully committed to supporting its customers and owners despite the news. They will continue to honor all existing warranties and service agreements for all WM Motor vehicles.
Founded in 2015 by Freeman Shen, a former CEO of Geely, WM Motor was regarded was one of the most promising EV startups as it was backed up by Baidu and Tencent Holdings. In 2022, it sold about 35,000 EV SUVs, a figure like 2021’s. However, for 2023, it sold only 1,387 vehicles.
It was also supposed to launch the M7 EV this year, but that didn’t happen. Instead, it laid off employees, suspended factory production and cut back on aftersales services.
Their difficulty is partly due to a fierce price war in China which was launched by Tesla.
China’s EV market is rapidly evolving, with about 100 manufacturers churning out pure-electric and plug-in hybrid models, down from around 500 registered makers in 2019.
Better sell the company to Geely or some state operated car manufacturers.
ReplyDeleteFierce, bloody competetion in China with hundreds of brands fighting for life, and Mitsubishi being the last casualty.. Mazda, Nissan, GM, and Ford holding for dear life..
ReplyDeleteGM is doing well with Wuling in China.
DeleteNissan,GM and Ford are still doing well in China.
DeleteMazda is still
Who’s the group that brought this brand?
ReplyDeleteEVOxTerra...the same group that brought in Hongqi.
DeleteHonggi will surely suffer same feat
ReplyDeleteGarbage IN, Garbage OUT.
ReplyDelete