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China Evergrande's EV unit likely to shut down without new funding

The company said it is seeking to cut costs by reducing staff numbers and improving management efficiency. However, "in face of the inability to obtain additional liquidity

Evergrande
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China Evergrande New Energy Vehicle Group Ltd. warned it may have to stop making electric cars if it can’t obtain new financing, having delivered just 900 of its much-delayed flagship model. 
 
The company said it is seeking to cut costs by reducing staff numbers and improving management efficiency. However, “in face of the inability to obtain additional liquidity, the group is at risk of discontinuing production,” it said in a statement to the Hong Kong Stock Exchange. 

While Evergrande had flagged as early as August 2021 that it was running short of cash, this is the starkest warning yet that

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First Published: Mar 23 2023 | 7:40 AM IST

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