Life changes fast.
WM Motor, the Chinese electric car maker that recently tried to go public, has filed for bankruptcy in Shanghai.
The company, which designs, manufactures and sells cars under the Weltmeister brand, faces stiff competition in China's cutthroat electric vehicle market. The Wall Street Journal reported that earlier this year, the company suspended most of its production and laid off workers because of a cash crunch.
Weimar was founded in 2015 by Freeman, former chairman of Volvo's China business.
Life changes fast.
WM Motor, the Chinese electric car maker that recently tried to go public, has filed for bankruptcy in Shanghai.
The company, which designs, manufactures and sells cars under the Weltmeister brand, faces stiff competition in China's cutthroat electric vehicle market. The Wall Street Journal reported that earlier this year, the company suspended most of its production and laid off workers because of a cash crunch.
Weimar was founded in 2015 by Freeman Shen, the former chairman of Volvo's China operations. Its shareholders include Baidu.com (BIDU), Tencent Holdings (TCEHY) and HongShan, formerly known as Sequoia Capital China.
Last year, Weimar applied for an initial public offering (IPO) in Hong Kong, but it failed to materialize. The company also failed to list in the Asian financial center through a reverse merger with another company.
About a month ago, Nasdaq-listed Chinese car dealer Kaixin Auto Holdings (KXIN) said it planned to buy Weimar through the issuance of new shares. It is unclear if the deal is still in progress. The companies didn't immediately respond to requests for comment.
Weimar said in a post on social media on Tuesday that its pre-restructuring application had been accepted by a Shanghai court on Oct. 7. It added that the pre-restructuring would "bring in strategic investors from around the world in order to achieve the rebirth of Weimar".
There are many electric car brands in China, but the market is likely to consolidate. AlixPartners estimates that only 25 to 30 of China's more than 160 electric vehicle brands may still be in operation by 2030.