Evergrande NEV president faces investigation

Evergrande New Energy Vehicle, the electric car division of the Chinese property group Evergrande, is now facing a second investigation into a manager. This time, the focus is on Liu Yongzhuo, the company's president.

Image: Evergrande

Evergrande New Energy Vehicle seems to have enough problems on its plate – first and foremost financial ones. According to a stock exchange announcement from last year, the company needs additional capital to continue production – in spring, the equivalent of 3.9 billion euros was mentioned. The media now report that Liu Yongzhuo, the head of Evergrande New Energy Vehicle, has been arrested on suspicion of unspecified criminal offences. Chinese authorities had already launched an investigation into CEO Xu Jiayin several months ago.

Evergrande NEV was launched with great ambitions as an electric car project by the Chinese property group Evergrande. However, since the parent company got into financial difficulties, Evergrande NEV has also been experiencing financial problems. When pre-sales of the Hengchi 5 began in July 2022, it was still said that the first 10,000 vehicles would be completed by the first quarter of 2023. However, series production was suspended at the end of 2022 due to a lack of new orders. As reported, most employees at the Swedish subsidiary NEVS were also laid off in mid-March 2023 as part of the strict cost-cutting programme.

It is now known that the Evergrande property group is more than 300 billion US dollars in debt. At the time of its foundation in 2019, Evergrande NEV stated that it had set itself the goal of becoming one of the leading manufacturers of electric cars in just three to five years.



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