Evergrande’s EV adventure gets worse and worse each month. Evergrande today due to lack of funds Hengchi has to stop production of the 5 model left. The pause is expected to last until May, according to the company, but that may just be wishful thinking.
Evergrande Hengchi 5 orders opened in May last year and the first deliveries took place in October. Then in December the problems started and the company had at least one workforce of that time. lay off 10% forced. Salary cuts were also made for those lucky enough to keep their jobs. In addition to all these troubles, due to not enough new orders mass production is suspended There was also a report claiming
Fast forward a few months and in March Evergrandeannounced that it continues to move forward with cost-cutting initiatives to focus all its remaining financial resources on supporting mass production of the Hengchi 5, including layoffs at its Swedish subsidiary National Electric Vehicle Sweden EU. This announcement was heralded as it also announced that there is a risk of stopping production if additional liquidity is not provided.
This is us the money has finally run out and brings it to the present, which caused the closure of production. So far, more than 900 Hengchi has been delivered to 5 customers. Hengchi 5 starts at Cny 179,000 ($25,819).
Evergrande plans to launch many additional models in the future, i.e. from Cny 29 billion ($4.1 billion) can provide more financing. However, for now, the financial direction of the company is a big question mark.