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Evergrande's e-car subsidiary is running out of money

2021-09-25T18:26:24.638Z

The Chinese financial group Evergrande has money worries. Now the group's electric car division is warning that employees will soon no longer be able to be paid if an investor is not found quickly.



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Prototype of the Evergrande car subsidiary (archive image): Big plans, big problems

Photo: Bloomberg / Getty Images

It is well known that the Chinese conglomerate Evergrande is in dire straits. But now a message from the electric car division shows how thin the company's financial cushion is apparently: One will soon no longer be able to pay the employees' salaries if a buyer or investor cannot be found promptly, according to one Message from the group, as reported by the Reuters news agency. There is talk of a "serious shortage of funds".

The electric car division called "New Energy Vehicle Group" is only one small component of the Chinese conglomerate.

In 2019, the start-up set itself the goal of overtaking Tesla boss Elon Musk as the most important electric car manufacturer within five years.

Although the company presented several new models under the “Hengchi” brand at the Shanghai auto show, series production is still a long way off.

According to media reports, the bottom line was a loss of the equivalent of $ 744 million in the first half of the year.

The Evergrande Group is in the chalk for investors with more than $ 300 billion.

The company let a deadline for the transfer of due bond interest pass on Friday.

Investors fear that a bankruptcy of the group could spread to a financial crisis in China.

mic / Reuters

Source: spiegel

All business articles on 2021-09-25

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