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.