Can Lu Guanqiu’s Wanxiang really become China’s Tesla?
April 24, 2014 Leave a comment
Can Wanxiang really become China’s Tesla?
Staff Reporter
2014-04-15
Lu Guanqiu, second left, briefs visitors on the company’s development of electric cars, Nov. 24, 2013. (Photo/Xinhua)
Lu Guanqiu, 69, the founder of Hangzhou-based Wanxiang Group, a leading Chinese auto parts maker, seems to have moved a step closer towards his dream of building complete cars, after his enterprise bought American plug-in hybrid sports carmaker Fisker Automotive earlier this year.
The electric automobiles Wanxiang has built have sparked quality disputes in the Chinese market over the past few years, however, and people have started questioning whether or not Wanxiang can really become “China’s Tesla” as previous media reports have implied, the Guangzhou-based Southern Weekly reports.
The Wanxiang Group, which started its business with farming machine assembly and repairing services 45 years ago, was described as “China’s Tesla” soon after the US bankruptcy court approved its application to buy Fisker’s assets on Feb. 18.
According to a report from China-based Guotai Junan Securities on the deal, owning one of the world’s advanced makers of batteries for electric automobiles — referred to as the A123 System — and Fisker, Wanxiang Qianchao, the subsidiary of Wanxiang Group that produces and markets automobile parts, could possibly become another Tesla along with Fisker and A123.
After it was reported on Feb. 17 that Wanxiang was planning to buy Fisker, Wanxiang Qianchao’s stocks rose for three consecutive trading days.
Wanxiang Qianchao later declared that it wouldn’t launch any investment in the electric car manufacturing sector, unless the business group’s electric vehicles production branch, Wanxiang EV, began generating stable profits.
While Fisker is focused on the manufacture of an extended range of electric vehicles, as opposed to Wanxiang’s battery-powered electric vehicles, the purchase of Fisker will not affect Wanxiang EV’s development, the company stated.
A source familiar with the Fisker deal told the Southern Weekly that Beijing Automotive Group was in fact the company that purchased Fisker, terming Wanxiang a “go-between.”
Wanxiang’s next step will be to transfer Fisker’s assets to Beijing Automotive, the source revealed.
Lu told the Chinese-language Zhejiang Daily after the purchase deal that Fisker would manufacture cars on the mainland. “As to when Wanxiang will start producing its own automobiles, it’s still hard to say,” he said.
About bambooinnovator
Bamboo Innovator 