Chinese electric car startup faces double blow from outbreak and cash shortage
China's army of electric vehicle startups was once seen as the backbone of China's leading global revolution in electric vehicles, but the new crown virus epidemic and the difficulties encountered before the epidemic may make it difficult for dozens of startups to survive.
Given that heavy government subsidies will soon end and private equity is drying up, startups currently under heavy pressure are struggling to secure financing to survive.
Huang Ming, founder of electric vehicle startup Bordrin Motors and a former Ford Motor Co. and General Motors Co. employee, said we do need investment soon. Bojun Automobile is headquartered in Nanjing. At the beginning of the year, Huang Ximing arranged a series of meetings with potential investors to obtain financing to maintain the company's survival. The most important one was a meeting with the Tianjin Municipal Government. Tianjin is a port city very close to Beijing.
But he said the epidemic interrupted it all. He said that we had hoped to complete the transaction in February, but then no one could work.