WM Motor files for insolvency

The Chinese startup filed for insolvency at the beginning of the week. About a month ago, it looked as if a takeover deal could be arranged. Probably in vain. Since the Corona pandemic, the manufacturer has been struggling with financial difficulties.

The Chinese start-up WM Motor has filed for bankruptcy. The bankruptcy proceedings are being handled by a court in Shanghai, reports the news agency Reuters.

According to its own statements, however, WM Motor does not want to give up. “WM Motor’s planned reorganisation will introduce strategic investors from across the globe to achieve its rebirth,” the electric car maker wrote on Weibo.

It was only about a month ago that Chinese car trading group Kaixin Auto announced its intention to fully acquire WM Motor. Previously, WM Motor had tried its luck on the Hong Kong stock exchange through a reverse takeover of Apollo Future Mobility Group, but was unsuccessful in this case as well.

After successful financing rounds in 2020 and 2021, the company had run into financial difficulties last year due to Corona, rising material costs and patchy supply chains.

reuters.com