Recently, Hengda announced that after 900 vehicles were delivered, the Tianjin factory of Hengda Motor suspended production of Hengchi 5 due to lack of funds. Previously, Hengda Motor suspended other factories and concentrated resources on production in the Tianjin factory. This time, the Tianjin factory suspended production, indicating that Hengchi announced a complete shutdown for a period of time. Hengda Motor plans to resume production in May 2023.
Previously, on March 23, Hengda Automobile announced that Hengchi 5 is in continuous mass production, and more than 900 Hengchi 5 have been delivered since sales. In order to concentrate financial resources to support the mass production of Hengchi 5, the company continues to promote cost-saving measures, including optimizing the staff structure. At the same time, Hengda Automobile admits that there is a risk of production suspension if it cannot obtain new liquidity. However, if the company can seek financing of more than RMB 29 billion in the future, plans to launch a number of flagship models, and hopes to achieve mass production, under such a plan, the cumulative unleveraged cash flow from 2023 to 2026 is expected to reach between RMB 7 billion and RMB 5 billion.
It is reported that in 2019, Hengda officially released the new energy vehicle brand Hengchi. It has said that it will take 3 to 5 years to build the world’s largest and most powerful new energy vehicle company, and reach the goal of producing and selling 5 million vehicles within 10 years. At first, Hengda Automobile completed the layout of the whole vehicle, motor, battery and other production sectors through a series of acquisitions. Two years before the official announcement of the car, Hengda Automobile invested about 47 billion yuan in the new energy business. After the mass production date of Hengchi’s new car was delayed several times, Hengchi 5 real car finally appeared in April 2022, and started delivery at the end of that year. The first 100 owners picked up the car. As of April this year, Hengchi 5 delivered more than 900 vehicles.
"China Quality News" [Information Channel]
关于作者