CHINA DAILY | HONG KONG EDITION Monday, November 18, 2019 MOTORING | 19
profit could fall as much as 43 per cent this year. BJEV, the largest maker of elec Evergrande to tric cars in the world, also forecast a 2019 loss in a grim earnings update. Startups are facing an even more serious situation, jostling enter NEV for attention in an almost over crowded sector and trying to pro duce convincing arguments about future profitability. They raised just $783 million market fast from January to midJune 2019, compared with $6 billion for the Chinese property development company will same period last year, according invest 45 billion yuan in auto sector by 2021 to Reuters, citing data from Pitch Book. For 2018, the total funds raised stood at $7.7 billion. By LI FUSHENG Nio, once hailed as Tesla of Chi [email protected] na, failed last month in its attempt For core technology to get local government funding. Chinese property developer In the first 10 months this year, Evergrande has rolled out grand — and companies the startup that has burned if not grandiose — plans for elec available to be through more than $5 billion in tric vehicles at a time when estab four years delivered less than lished carmakers in the country purchased, we’ll buy 15,000 vehicles. are seeing sales slumps and start them all. For those we By the end of the third quarter, ups are jostling for attention of Nio had cut its workforce to 7,800 investors. couldn’t buy, we’d from 9,900 employees in January, The company will invest a total like to join hands with and its shares have dropped more of 45 billion yuan ($6.4 billion) by than 70 percent this year, accord 2021 in electric vehicles, said its them through ing to Bloomberg. chairman Xu Jiayin, also known cooperation.” Guangzhoubased XPeng shows its G3 model at the Shanghai auto show in April. LI FUSHENG / CHINA DAILY Reuters said XPeng is mulling as Hui Kayan, on Tuesday at a going public in the coming years, conference in Guangzhou, Guang Xu Jiayin, chairman of Ever with New York among one of pos dong province. grande ping spree, acquiring the control use or under construction in Tian ducing competitive cars. sible listing venues, to raise mon The goal is to become the ling stake in National Electric jin, Shanghai, Shenyang, The cooling market also works ey. world’s largest new energy car Vehicle Sweden for $930 million, Guangzhou as well as one in Swe against Evergrande. The proceeds will be mainly maker in three to five years, with investing more than $300 million den. Sales of electric cars and plugin used for research and develop the annual sales reaching 1 mil 1 million in a new venture with supercar He added that Evergrande is hybrids in China fell 46 percent in ment of autonomous drivingre lion units in five to 10 years. For units maker Koenigsegg, and paying now developing 15 models, ran October to 75,000 units compared lated software, mass production the five years after the first 1 mil $154.4 million for a 58 percent ging from midlevel to ultraluxury to September, according to the of its G3 sportutility vehicle mod annual sales target for electric lion units, the company said it vehicles made by Evergrande in stake in lithiumion battery maker cars, and the number of plants China Association of Automobile el and P7 sedan, branding and hopes to produce 5 million units five to 10 years Shanghai Center at New Energy. will reach 10 in China and other Manufacturers. expanding its retail network, said annually. The company had already countries involved the Belt and It was the fourth consecutive Reuters, citing people with “For core technology and com invested 16 billion yuan in electric Road Initiative to expand produc month of slowing sales after the knowledge of the matter. panies available to be purchased, cars by June this year, officials tion and lower costs. Chinese government cut subsidies XPeng, backed by Alibaba, said we’ll buy them all,” Xu told some 13,000+ said during the interim financial Analysts are not as confident as on purchases of electric vehicles on Wednesday it has raised $400 1,100 representatives from more results briefing in August. Xu about the company’s plans. in late June and the 16th month of million from investors including than 200 potential partners at the units Xu said the Hengchi 1, the first Cui Dongshu, secretarygeneral sales fall in country’s overall car Xiaomi Corp, to fund its growth. conference. the vehicles sold by XPeng in car developed by the company, of the China Passenger Car Associ market. The Guangzhoubased startup “For those we couldn’t buy, we’d the first nine months of 2019 will make its debut in the first half ation, said without a systematic BYD, the world’s biggest maker sold more than 13,000 vehicles in like to join hands with them of next year. It will go into mass approach, Evergrande will have a of new energy vehicles, reported the first nine months this year, through cooperation,” he said. production in 2021. difficult time realizing break an 89 percent slump in third which accounted for 1.4 percent of Evergrande has gone on a shop It currently has eight plants in throughs in technology and pro quarter earnings and warned total new energy cars sold in China. Brose expected to defy China’s slumping sales Short Torque Daimler cuts costs GAC Honda gives a test By LI FUSHENG continue our investment in the with job slashes drive to VE1 SUV project,” Xiang said. Daimler said Thursday it SinoJapanese joint venture In spite of China’s sluggish auto Globally, the company will spend planned to cut jobs to save more GAC Honda organized a test drive market, German automotive sup around 1.5 billion euros in three than 1 billion euros ($1.1 billion) of its first electric model, the VE1 plier Brose expects its sales revenue years on the development of new by the end of 2022, as the German SUV, on Tuesday in Tianjin. The in the country to almost double by products, technical equipment and luxury carmaker grapples with an new model, which has three vari 2025 by winning more local cus the global expansion of locations. expensive switch to greener vehi ants, features Honda’s SPORT EV tomers and offering new products, Around 20 percent of that budget cles. The MercedesBenz maker technology and has good perform its senior executives said. is earmarked for China, which has also been hit by expensive ance in safety and maneuverabili The familyowned company that accounts for a similar percentage of recalls, a slowing global market ty. The model has a design similar specializes in vehicle doors and the group’s global sales revenues, and an 870millioneuro fine for to that of the company’s gasoline seats as well as electric motors and Xiang said. selling vehicles that did not con fueled Vezel, one of the most pop drives had a turnover of 1.2 billion Sauernheimer said Brose is also form with legal emissions limits. ular smallsized SUVs in China, euros in China in 2018. The figure is increasing its focus on partnerships “By the end of 2022, Mercedes and thus makes it appealing to the expected to fall to 1.1 billion euros to bring together the expertise of Benz Cars plans to save more than target customers. The model has a this year but will reach around 2.1 companies and share the costs and 1 billion euros in personnel costs. maximum output of 120 kilowatts billion euros in 2025, according to Brose shows a concept car whose door can be opened with a hand risks of new developments. To this end, jobs are to be and offers a peak torque of 280 company CEO Kurt Sauernheimer. gesture at the Frankfurt auto show in September. The company is also responding reduced,” the company said in a Newton meters. The vehicle can He made the remarks on Friday PROVIDED TO CHINA DAILY to the great changes in the automo statement. Daimler, which accelerate from 0 to 50 kilometers in Shanghai, where its China opera tive industry with its “Future Brose” employs around 304,000 people per hour in 4 seconds and has a tions are headquartered. Shanghai market,” Sauernheimer said. year. She said South Korean and program, which will change the worldwide, did not specify how range of 401 kilometers in one is also home to one of Brose’s four Although China has been the Japanese carmakers are future tar structure of the company by 2023. many jobs would be slashed over charge. innovation hubs, which mainly world’s largest car market since gets as well. This will also lead to changes in all but said 10 percent of manage focuses on studies related to smart 2009, it has far fewer vehicles per Currently, its major customers the number of staff throughout the ment positions would be affected. BMW hits 50K NEV and connected vehicles. 1,000 people compared with Euro are European and US carmakers. company, with reductions in some landmark in Shanghai “Some new mobility trends will pean countries and the United Xiang said Brose is increasing its areas and new jobs created in oth Ferrari releases easy BMW delivered its 50,000th come earlier here than in other States. investment in China by expanding ers. driving coupe new energy vehicle in China on markets,” Sauernheimer said. Jenny Xiang, president of Brose production capacities and intro “We want to streamline work Ferrari on Thursday unveiled a Saturday in Shanghai. The Ger He added Brose is confident in China, said China is expected to ducing new products, including an flows, achieve fast results and sus new, easydriving coupe. The man premium carmaker offers the growth potential of the Chinese have a 3 to 4 percent growth year electric air conditioning compres tainably reduce costs. At the same coupe, named Roma, aims at four new energy vehicle models in market, which has been the long onyear in the long run, and the sor, the demand of which is explod time we are hiring engineers and attracting buyers who have been the country and its sales surged time engine of the global auto mar company is planning to scale up the ing globally. The compressor will be software specialists to push ahead intimidated by sportscars and per more than 40 percent yearon ket, although the downturn starting percentage of Chinese brands in its locally produced in China starting with the further development and haps even the Prancing Horse’s year from January to October. from the second half of 2018 is revenue to over 20 percent by 2025. around 2022. “It involves a large expansion of our product portfolio,” racing heritage. The Ferrari Roma Globally, BMW’s accumulated expected to extend into 2020. It was 5 percent in 2017 and the amount of investment, from testing Sauernheimer said in a September is the fifth new model launched by new energy vehicle sales will “But China is far from a saturated figure will be around 12 percent this to production to personnel. We will statement. the luxury sport scar maker this reach 500,000 by the end of 2019, year, and one of 15 to be rolled out more than all other premium through 2022 under an ambitious brands combined. The figure will model overhaul. “We believe we reach 1 million by 2021, said Liu will attract an important number Zhi, president of BMW China Tesla to build first European factory in Germany of new Ferrari clients,” said com Automotive Trading. He said mercial and marketing director BMW will offer 25 new energy BERLIN — Germany on Wednes than the airport, that’s for sure,” Enrico Galliera. Unveiled in the vehicles globally by 2023 and their day hailed Tesla’s announcement to Musk said. Italian capital, the Roma is sales will account for 15 percent to build its first European factory in Germany, home to some of the designed “for people who would 25 percent of the carmaker’s total the country, days after the govern world’s biggest automakers, has been like to drive a sportscar, or a Ferra sales by 2025. ment said it would boost subsidies overtaken by the United States, Chi ri, but are a little bit afraid of Fer for buyers of electrics cars. na and some European neighbors in rari and sports cars”, he said. VW spends $800 m to Tesla CEO Elon Musk said during the adoption of electric vehicles. expand US plant an award ceremony in the German In July, Tesla announced plans to SAIC Maxus fields Volkswagen is making Ten capital Tuesday evening that “we’ve build its third Gigafactory — the first massive orders of MPV nessee its North American base decided to put the Tesla Gigafactory outside the US — in Shanghai. SAIC Maxus said there is much for electric vehicle production, Europe in the Berlin area”. German automaker Volkswagen, potential for MPVs in China’s eco breaking ground on an $800 mil The company will also set up an which last week began mass produc nomically developed cities. The lion expansion at its plant in engineering and design center in tion of its ID.3 electric car, welcomed carmaker said MPVs accounted Chattanooga. Volkswagen of Berlin, Musk said at the Golden rival Tesla’s decision to build the fac for 9 percent of Beijing’s passen America CEO Scott Keogh was at Steering Wheel event. He wrote on tory on its home turf. ger car market and 7.8 percent in the factory Wednesday for the Twitter that the new plant “will Electric car maker Tesla exhibits its Model X at the second China “I’m happy that Elon is, let’s say, Shanghai, higher than the coun expansion’s groundbreaking cer build batteries, powertrains and International Import Expo. ZHANG DANDAN / CHINA DAILY pulling us, but I think the German try’s average of 6.7 percent. The emony. In an announcement vehicles, starting with Model Y”. industry is really now strongly company said on Monday that it from Volkswagen, Keogh called it German Economy Minister Peter cussed,” he told reporters in Berlin. The subsidy will also be extended investing,” said Volkswagen CEO had garnered hundreds of orders a “a big, big moment” for the Altmaier called the announcement “It’s clear that Tesla will be treated from the end of 2020 currently to Herbert Diess, speaking alongside in Beijing for its newly launched company. “Electric vehicles are a “glorious success” for the country’s the same way as all other automo the end of 2025, and the govern Musk at Tuesday’s event. “And we flagship MPV G20. The model fea the future of mobility and Volks attractiveness as an auto industry bile companies if it invests in Ger ment and industry agreed to aim for will keep you alert.” tures elegant design and offers wagen will build them for mil location, especially in the race to many and creates jobs here.” 50,000 publicly accessible charging “This is good news for VW, Daim spacious room for up to seven lions, not just millionaires,” develop and produce electric cars Still, Tesla’s announcement comes stations nationwide by 2022. ler and BMW,” said Ferdinand Dud people. It sports a 2.0liter turbo Keogh vowed. The move toward and batteries. just a week after German officials Musk said that the plan is for the enhoeffer, who heads the Center charged engine, generating a max electric vehicles underscores the Altmaier said there had been and auto industry leaders agreed to factory to be built near Berlin’s new Automotive Research, adding that imum output of 165 kilowatts and company’s effort to transform competition for the plant among increase by half the existing govern airport, which is located just outside Tesla’s choice in favor of Germany a top torque of 350 Newton itself after the 2015 diesel scan European countries in recent ment incentives for electric vehicles the city limits in neighboring Bran would benefit electric mobility in meters. The model boasts many dal, in which Volkswagen was months, but denied that the govern with a list price of up to 40,000 denburg state and currently slated the country “more than 100 sum classleading safety features, caught using software to cheat ment had offered any financial sup euros ($44,200) — an incentive Tes to open next year after years of mits with the chancellor”. including parking assist, lane on emissions testing. port to Tesla. la can expect to profit from indirect delays. departure warning and adaptive “So far, subsidies haven’t been dis ly. “We definitely need to move faster AP cruise control. MOTORING AGENCIES