Evergrande Auto Denies Merger And Acquisition Rumors

Regarding recent reports that Evergrande Auto will be acquired by another automobile company, on August 18, Liu Yongzhuo, president of Evergrande Auto, responded to domestic media that the company has been actively introducing strategic investors. Up to now, both local governments and many powerful enterprises have expressed their interest in Evergrande Auto, but there has been no M&A.

Jiemian News reported on August 17 that an insider revealed that Evergrande Auto may be acquired by another automobile company. People familiar with the matter said that the M&A is a government act, and the parties are still deadlocked.

SEE ALSO: Evergrande Auto to Be Merged, Tianjin Factory to Shut down

The insider also said that, at present, only the Tianjin factory of Evergrande Auto has the necessary production qualifications and that the company has only produced about 200 Hengchi 5 vehicles in the past six months.

In this regard, Liu Yongzhuo said that the shutdown of the Tianjin factory is a rumor. At present, the production of Tianjin factory is normal, and the mass production of the Hengchi 5 is progressing in an orderly manner. More than 1,800 employees are working in the Tianjin factory to ensure mass production numbers are met in September and deliveries can begin in October.

Hengchi 5, the first model of Evergrande Auto, started pre-sale on July 6 and pre-sale with high intention on August 1, selling for 179,000 yuan ($26370.45). The pre-sale deposit is 1000 yuan, and 10,000 yuan can be transferred to 20,000 yuan for highly intentioned customers. The car is delivered according to the sequence of pre-sale order with high intention, and the car can be returned and refunded within 15 days after picking up the car.

Hengchi 5 is a compact SUV, and it’s also the first mass production model of Evergrande Auto. It is positioned as a compact pure electric SUV, equipped with more than L2.5 auxiliary driving function and CATL lithium iron phosphate battery, with a rated power of 72.8 kWh and a cruising range of 602 km. In the fast charging mode, it takes only 28 minutes to charge the power from 30% to 80%.

On July 29, Evergrande announced that it has received more than 37,000 pre-sale orders up to now. Evergrande Auto previously stated that the first batch of 10,000 new cars will be delivered one after another from October this year, and the first batch of 10,000 cars will be delivered before the first quarter of next year.