WM Motor Applies for Bankruptcy Review

According to the latest information, WM Motor Technology Group Co., Ltd. has recently officially applied for bankruptcy review, and the handling court is Shanghai Third Intermediate People’s Court.

WM Motor Technology Group Co., Ltd. was established in May 2012, with Shen Hui as the legal representative and a registered capital of 6 billion yuan (approximatly ＄0.8 billion). It is wholly owned by Suzhou WM Intelligent Travel Technology Co., Ltd.

In September this year, the failed listing of WM Motor through a shell company was announced. Afterwards, there were reports that Kaixin Auto plans to acquire 100% equity of WM Motor. Recently, Suzhou WM Intelligent Travel Technology Co., Ltd.’s ownership of 6 billion shares in the company has also been frozen.

SEE ALSO: WM Motor and Kaixin Auto Sign a Letter of Intent for Merger and Acquisition

According to the information, WM Motor’s first mass-produced model, EX5, was officially unveiled in December 2017. It is one of the early new forces brands that entered the domestic new energy vehicle market and was among the top tier along with NIO, XPeng and Li Auto at that time.

According to the data, in 2019, WM Motor achieved an annual sales volume of 16,876 vehicles, ranking second in sales among new forces in the automotive industry. It has also attracted investments from top companies including Baidu, Inc., and SAIC Motor Corporation Limited, with a total financing amount exceeding 35 billion yuan (approximatly ＄4.8 billion).

However, in 2021, WM Motor frequently experienced spontaneous combustion incidents, mainly concentrated on the EX5 and EX6 models. Subsequently, WM Motor conducted a vehicle recall, but the solution was surprisingly to “lock” the battery capacity of the vehicles, greatly reducing their driving range. This has caused dissatisfaction among car owners and they have jointly sent legal letters to WM Motor for rights protection.

From this point on, WM Motor’s sales began to decline significantly, and by 2022, it had disappeared from the sales rankings. According to data from the China Passenger Car Association (CPCA), WM Motor’s cumulative sales in 2022 were only 29,450 vehicles, a year-on-year decrease of 33.3%. In 2023, actual sales data could not be found for WM Motor, which was once highly regarded. It is estimated that WM Motor is in trouble.