China Evergrande Group’s electric vehicle unit has pledged to deliver its first auto early next year, consolidating its commitment to mass production just weeks after recognizing severe cash flow difficulties.
Evergrande NEV president Liu Yongzhu revealed the commitment in a meeting at the Tianjin plant attended by executives from strategic partners, including representatives of the German Bosch and the Japanese Hitachi. The executives promised to ensure that spare parts were supplied in timely manner.
The statement showed that the local county senior official said the region will provide assistance from financing to approvals and coordination with financial institutions, to ensure the company can “achieve mass production goals. in an early date “.
The company of auto Electric said on Sept. 24 that there is no guarantee it will be in able to meet its financial obligations as it continues to seek strategic investors to inject much needed capital.
The statement confirmed a previous Bloomberg News report that Evergrande NEV was in default on some of its employees’ salaries and delayed payments to a number of plant equipment suppliers.
Evergrande’s parent company, NEV, is struggling to raise funds to meet its $ 300 billion plus pledges, sparking fears it is heading for a default that could harm the world’s second largest economy.
Crisis has rocked global financial markets as investors weigh potential fallout from developer slump in difficulty.
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