Restructuring investors say WM Motor may be able to "come back to life."
On September 6, Shenzhen Xiangfei Automobile Sales Co., Ltd. (hereinafter referred to as "Xiangfei"), the restructuring investor of WM Motor, issued an announcement stating that it is making every effort to promote the rapid resumption of mass production of WM Motor EX5 and E5 models at its Wenzhou base.
In the announcement, Xiangfei announced the relevant plans for the "New WM Motor": the initial investment is expected to be 1 billion yuan for equipment upgrades, supply chain recovery and product development; it plans to launch more than 10 new products to the market in the next five years to adapt to the diverse needs of the global market.
Regarding this year's production and revenue, Xiangfei said that New WM Motor plans to produce a minimum of 10,000 EX5 and E5 models by the end of 2025, and strive for 20,000 units, with expected revenue of 1 billion to 2 billion yuan; in addition, the introduction of A00-class sedans and small SUVs, with a total production of 10,000 units, will further diversify revenue sources.
Specifically, Xiangfei has set a three-step strategy for the "New Weimar":
Production of the EX5 and E5 models will resume in September this year, with a production and sales target of 10,000 units and a goal of 20,000 units. Simultaneously, a KD plant in Thailand will be built to expand into Southeast Asia and the Middle East. Production capacity will be expanded to 100,000 units in 2026.
Annual sales in 2027-2028 will increase from 250,000 to 400,000 units, with the launch of mass production of high-end assisted driving models and the initiation of an IPO;
The goal is to achieve an annual production of 1 million units and revenue of 120 billion yuan by 2030.
"Subject to compliance with relevant policies and regulations, the Wenzhou Municipal Government is considering providing subsidies to WM Motor for its resumption of work and production, production line technical upgrades, product research and development, and market promotion. Subject to compliance with relevant policies and regulations, the government is considering giving priority to including the new WM Motor in local public procurement," the announcement said.
According to Tianyancha, Shenzhen Xiangfei Automobile Sales Co., Ltd. was established in September 2023 with a registered capital of 100 million yuan and a paid-in capital of 41.52 million yuan.
However, after a thorough investigation of Xiangfei's ownership, it was revealed that the company is inextricably linked to the troubled Baoneng Group. Xiangfei's two largest shareholders are Shenzhen Zhuokai Enterprise Management Co., Ltd. and Shenzhen Fengyu Enterprise Management Co., Ltd., holding 81.8198% and 18.1802% of the shares, respectively. The company's actual controlling shareholder is Huang Jing. Huang Jing and Shenzhen Fengyu Enterprise Management Co., Ltd. also control other Baoneng Group companies, including Kunshan Baoneng Automobile and Harbin Youbaojia Automobile Sales Co., Ltd.
Earlier reports also indicated that WM Motor had already exhibited its vehicles at the Shenzhen Baoneng Automobile Exhibition Center. Tianyancha (a search engine) shows that Baoneng Automobile has been implicated in 349 cases as a defendant, involving a total amount of 20.806 billion yuan.
Public information shows that WM Motor was founded in 2015. Its founder, Shen Hui, previously held senior management positions at automakers such as Geely and Volvo. WM Motor's first vehicle went into mass production in 2018. The company operates two smart manufacturing plants in Wenzhou, Zhejiang, and Huanggang, Hubei, and holds two new energy passenger vehicle manufacturing licenses. However, WM Motor has only sold approximately 100,000 vehicles since its founding. Since 2022, WM Motor has been plagued by reports of factory shutdowns and dealership closures.
In October 2023, WM Motor Technology Group filed for bankruptcy reorganization; in March 2024, the court confirmed that it was insolvent and officially entered the substantive merger and reorganization procedure.
The audit report mentioned in the reorganization case shows that the total book assets of WM Motor Group after the audit were 3.988 billion yuan, and its liabilities were as high as 20.367 billion yuan.
According to the reorganization plan approved by the court on April 3, 2025, Xiangfei became the reorganization investor and new shareholder of four companies: WM Motor Technology Group Co., Ltd., WM Smart Mobility Technology (Shanghai) Co., Ltd., Suzhou WM Smart Mobility Technology Co., Ltd., and WM Motor Manufacturing Wenzhou Co., Ltd.
Whether Xiangfei, which was established only two years ago and has a registered capital of 100 million yuan, can fill the "hole" of more than 20 billion yuan left by WM Motor remains to be verified.