By ZHOU Shuqi
Following yet another startling twist of fortune, a new chapter is unfolding at WM Motor's headquarters in Qingpu District, Shanghai, perhaps the final chapter.
Once a state-of-the-art bastion of China's new EV era, WM headquarters now stand empty. Only its forlorn logo and a dusty model chassis are left to remind archaeologists of an illustrious past and tens of billions of yuan that vanished under its roof.
The 20-million-yuan rent has not been paid and the factory has been repossessed. The clock has finally stopped running on the monthly management fee of 30 yuan per square meter.
Since 2022, WM Motor has lurched from fire to fire. Founder SHEN Hui was labeled a defaulter, and the company fessed up to a debt of around 600 million yuan (US million). In November, WM Motor unilaterally cut salaries for all employees and then failed to pay even the reduced amounts.
At the end of August, WM was ordered to pay 13.4 million yuan in outstanding salaries within fifteen days, but, a substantial number of employees have yet to receive what is owed to them.
WM's only real strategy to overcome these challenges was to frantically and repeatedly attempt to go public but achieved nothing but repeated embarrassment.
On September 11, Kaixin Group, a domestic used-car dealer, announced a plan to acquire all of WM Motor's shares, to gain manufacturing qualifications and access to factories. Having incurred losses exceeding US$500 million last year, the question of whether Kaixin will emerge as WM's savior or face a similar fate remains uncertain.
