Electric-Vehicle Maker Future Mobility Signs Deal for $1.7 Billion Factory
(Beijing) — Future Mobility Corp. (FMC), a Chinese electric-car startup backed by former executives from BMW and Tesla Motors, has agreed to build an 11.6 billion yuan ($1.7 billion) factory in Nanjing, its first major step toward actual production.
The plant expects to turn out the first batch of 150,000 electric SUVs in 2020, the company said at a signing ceremony with the Nanjing Development Zone on Thursday. Once completed, it will be able to produce 300,000 vehicles a year for the global market.
The smart-car aspirant began as a joint venture between tech giants Tencent Holdings Ltd. and Foxconn, both of which pledged 30% to the 1 billion yuan enterprise in early 2015. Hong Kong-listed dealership franchise Harmony Auto was set to hold the remaining 40% of the venture, which is registered in Hong Kong.
However, Tencent and Foxconn backed out late last year before injecting their cash. Harmony introduced new investors Leaguer Auto and Jinheng Investments to replace the two. Others holding small stakes in the venture include current FMC managers who were former executives at BMW, Mercedes-Benz, Google and Tesla Motors.
FMC also announced its new brand name, Zhixing, during the event, dropping the former title, which incorporated the Tencent and Foxconn names.
Future Mobility COO Daniel Kirchert said at a forum last week the two tech companies decided to withdraw from the venture due to restrictions on outbound capital. Sources told Caixin that the two also may have lost interest after learning that Auto Harmony President Feng Changge might be embroiled in a corruption case.
Neither Tencent nor Foxconn would comment on the subject.
FMC is just the latest of dozens of Chinese companies to engage in new-energy vehicle production in the last two years, spurred by Beijing’s goals to sharply boost the number of green cars on the nation’s roads. But many of those companies have produced inferior products or even no products at all, and the government is investigating many companies for alleged abuse of generous subsidies meant to support the sector.
Another major entrant is online video giant LeEco, which is building an 11 billion yuan plant in neighboring Zhejiang province that will have the capacity to make 400,000 vehicles a year upon completion in 2020. LeEco is also backing Faraday Future, a U.S. startup now building a factory near Las Vegas, that has promised to start delivering vehicles sometime next year.
Contact reporter April Ma (firstname.lastname@example.org)
Jan 23 18:30
Jan 23 16:00
Jan 23 10:48
Jan 23 05:58
Jan 23 03:49
Jan 23 03:41
Jan 23 03:09
Jan 22 15:44
Jan 22 06:31
Jan 22 03:47
Jan 22 03:06
Jan 21 17:02
- 1Wuhan Virus Latest: China Reports First Deaths Outside Epicenter of Outbreak
- 2Reporter’s Note: We Stayed in Wuhan as the Last Trains Pulled Out
- 3Wuhan Virus Update: Health Expert Warns of ‘Super-Spreader’ of Viral Pneumonia
- 4How Did Two Women Drive a Luxury SUV Into the Forbidden City?
- 5After Layoffs, Oracle Executive Vows to Stay in China
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas