There’s no shortage of Chinese EV brands, but WM Motor has filed for bankruptcy.
In a Weibo post, the beleaguered automaker said they’ve strived to “provide high-quality products and excellent services” since 2015. The company went on to say they have “achieved rapid growth” thanks to the support of their customers, employees, and the governments of Shanghai, Wenzhou, Huanggang, Hengyang, Mianyang, and Chengdu.
However, WM Motor said a number of events have hampered their success. These include the pandemic, a sluggish capital market, fluctuations in raw material prices, and “frustrations in obtaining operating and development funds.” These issues have caused the company to run into “operating difficulties” and the eventual “pre-reorganization process.”
More: China’s WM Motor Unveils An 805 HP Track Car Based On Their Upcoming Electric Crossover
Despite the setback, WM Motor said they’re hoping to save themselves by “adjusting corporate strategies, solving financial debt problems, and obtaining investors to participate in restructuring and development.” The automaker also said they’ll conduct a comprehensive review to identify ways to reduce costs, improve efficiencies, and make the company sustainable.
Reuters notes the move comes shortly after Kaixin Auto Holdings signed a non-binding acquisition term sheet with the company last month. At the time, Kaixin said they were “planning to issue a certain number of new shares to acquire 100% of equity of WM Motor held by its current shareholders.”
The company billed this as a win as they noted WM Motor has successfully developed and delivered four EVs with a fifth model on the horizon. The firm also said the automaker has sold over 100,000 vehicles and is primed for future success.
