Green Field Motor has abandoned production after the company failed to settle debts toward 270 suppliers (totaling about 300 million yuan) despite the acquisition by new owners Harmony group. Reports indicate the plant has been in a state of shutdown since May 2015, and almost all skilled staff members have departed. It appears that Harmony has not committed any more funds to GFMC after paying off original shareholders and subsequently recouping a fraction of its initial investment by transferring some stake to a new JV (see above post).
http://auto.gasgoo.com/News/2016/05/17075437543760359686852.shtml
The larger picture:
A new realization now seems to be setting in among some electric auto companies that perhaps the new energy vehicle sector has received
over-investment and not every manufacturer will be able to reap sustainable cash flow/profits from all the new plants that have been built in the recent
mad rush towards EVs (also considering the necessary future investment in design, prototyping, R&D, testing, tech licensing, homologation, marketing for in-the-pipeline products). There are also concerns among members of the EV industry associations regarding
whether the necessary help and support (cash and non-cash incentives) which the industry expected or were promised from authorities at local or provincial levels would be forthcoming if many of the new ventures begin to be viewed (by the authorities) as uneconomic, nonviable, or unproductive financially and socially. This is in stark contrast to the overwhelming optimism we are accustomed to seeing regarding China's EV industry generally.
Of course, these concerns are more likely to affect the newer manufacturers, whether they be greenfield (
pun?) startups or ambitious LSEV makers who are taking the risk with more modern ventures (larger factories, NEVs).
A similar view is presented in this article:
http://auto.people.com.cn/n1/2016/0527/c1005-28383476.html
