Is there a rescue? Happy Car has announced the signing of a non-binding letter of intent to acquire Weimar Motors

Happy Car has announced intent to acquire Weimar Motors

【phoneauto News】On September 11th, Kaixin Auto officially announced that it has signed a non-binding letter of intent for acquisition with WM Motor Holdings Limited (referred to as “WM Motor” or “WM Motor”), planning to issue a certain number of new shares to acquire 100% equity held by its shareholders. Three days ago, Apollo Mobility announced that the relevant parties have agreed to terminate the acquisition of WM Motor. At that time, this was seen as the last hope for WM Motor to turn the tables, but today’s acquisition by Kaixin Auto seems to bring new hope for WM Motor.

WM Motor

Lin Mingjun, Chairman and CEO of Kaixin Auto, said, “WM Motor’s brand and product positioning of fashionable technology are highly compatible with Kaixin Auto’s development plans. Through this acquisition cooperation, WM Motor will also have a larger capital stage to better promote the development and implementation of the smart mobility industry.”

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Kaixin Auto, a subsidiary of Kaixin Auto Holdings, is a Chinese luxury used car and imported new car retail platform engaged in the research, design, manufacturing, and sales of electric vehicles, driving innovation in the next generation of autonomous driving and artificial intelligence technologies. Kaixin Auto entered the used car retail market in 2017, went public on NASDAQ in 2019, and announced the establishment of its new energy vehicle division in August 2021.

As one of the earliest new forces in China’s automobile industry, WM Motor was once the darling of the capital market. During the controversial period of “Internet car manufacturing,” WM Motor successfully obtained investments from star capitals such as Baidu, Tencent, Sequoia Capital, Capital Today, SIG, and local governments. Public information shows that since its establishment, WM Motor has completed 12 rounds of financing from A to D, with a total financing of approximately 41 billion yuan. However, as competition in the domestic new energy vehicle market intensifies, WM Motor has gradually fallen behind.

In February of this year, Shen Hui posted on Weibo, stating, “Due to the objective impact of the epidemic and market environment over the past year, WM Motor has indeed encountered some difficulties. We are making adjustments through a series of cost reduction and efficiency improvement measures, fully ensuring the resumption of work and production, and guaranteeing the experience of end users.” However, WM Motor has been hit by a series of bad news. Not only facing financial pressure, but also being plagued by negative news. It has been listed as the person subject to enforcement measures multiple times, and public information shows that the total amount of enforcement against it exceeds 590 million yuan.

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