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The battered real estate giant needs the money to get afloat

Less than two years after its acquisition, the battered Chinese giant Evergrande has dumped its Protean Electric electric car unit.

It will be the British mobility company Bedeo who from now on manages Protean, while the real estate giant try to cope with the huge debt that threatens to shake up the Chinese economy.

A buried project

Evergrande

Bedeo has not disclosed details of the purchase, but the sale of one of Evergrande’s many assets will help it start paying off a monstrous debt of more than $ 300 billion.

Last week it also sold its real estate management subsidiary, Evergrande Property Services, to developer Hopson Development for about $ 2.58 billion.

The company is the second largest property developer in China by sales, and considering that the real estate sector accounts for almost 30% of China’s GDP, fears of possible contagion are well founded.

National Electric Vehicle Sweden (NEVS), a subsidiary of Evergrande Health, acquired British electric vehicle manufacturer Protean Electric in 2019.

The acquisition was part of Evergrande’s strategy to become a major player in the competitive electric vehicle industry -especially in China-.

But the arrival of financial collapse after years of aggressive policies and financial leverage has wiped out claims to become “the largest and most powerful group of new energy vehicles in the world,” as it claimed.

Evergrande And Protean

Announcement of the purchase of Protean by Evergrande, in 2019.

The NEVS unit has cost the Asian giant 7.7 billion dollars and many setbacks; all with ambitious goals in the background that will never materialize: five million cars a year by 2035 (one million by 2025), nine prototypes under the Hengchi brand that were presented in April at the Shanghai International Motor Show and and 500 GWh of batteries per year in China.

Photo | JustAnotherCarDesigner

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Lenny Li

I started to play with tech since middle school. Smart phones, laptops and gadgets are all about my life. Besides, I am also a big fan of Star War. May the force be with you!

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