By ZHU Xiaoyu
Kaixin Auto Holdings, a car-sales platform has signed a non-binding agreement to acquire EV maker Weltmeister (WM) Motor.
Just last week, WM abruptly terminated eight months of takeover talks with Apollo Future Mobility Group, which most insiders thought would put WM out of its misery. But that was until Kaixin swooped.
Kaixin Auto entered the used car business in 2017 and the platform "Haitaoche" in 2020. The company was listed on the NASDAQ in the United States in 2019 but has lost money ever since - US$280 million (2 billion yuan) by the end of last year.
In August, Kaixin Auto acquired Morning Star Auto, an auto parts manufacturer qualified for EV assembly lines, which means Kaixin Auto is now capable of making EVs. For now, Kaixin Auto’s plan is to make small-sized EVs priced under 100,000 yuan and sell them to customers in lower-tier cities.
What this has to do with Weltmeister, a maker of huge unlovable SUVs, is anyone's guess. But WM not only holds two qualifications for producing EVs but also has two idle factories.
Founded in 2015 WM Motor was briefly a star of the industry. The company launched its first model in 2018 and became the second-bestselling EV company in 2019, trailing only Nio. But as other EV startups made their way to the stock market, WM failed three times to make it to its IPO.
According to its prospectus, from 2019 to 2021, WM Motor lost 13.6 billion yuan. Assets were down to 3.7 billion yuan. While it was able to deliver 44,000 cars in 2021, in January this year, only 179 have flown off the lot.
Local business media Cailianshe reported that SHEN Hui, founder of WM Motors is no longer in China. Shen replied on social media that he is on “a business trip to Munich” and will “visit New York next.”
