Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
Byton's concept car
EV startup Byton acquires debt-laden FAW unit to gain production license
Automotive News China | 2018/10/5

Electric-vehicle startup Byton will purchase a struggling unit of major state-owned automaker China FAW Group Corp. to obtain the unití»s production license. 

The deal will allow Byton, backed by Chinese investors, to acquire subsidiary Tianjin Huali Automobile Co. for 1 yuan ($0.15), Tianjin FAW Xiali Automobile Co. said. 

According to the agreement Tianjin FAW Xiali signed with Byton last week, the latter must pay 54.62 million yuan in overdue salaries for Tianjin Hualií»s employees in the coming weeks. 

In addition, Byton must also retire Tianjin Hualií»s debt, totaling 800 million yuan, before September 30, 2019. 

Tianjin Huali and Tianjin FAW Xiali are based in the north China port city of Tianjin. 

Tianjin Huali, established in 1965 by the Tianjin municipal government, builds compact sedans and microvans. It was acquired in 2008 by Tianjin FAW Xiali, a Shenzhen-listed subsidiary of FAW Group. 

Tijian Huali, saddled by weak sales, has struggled with losses and has been unable to pay employee salaries on a timely basis in recent years. 

By Acquiring Tianjin Huali and its production license, Byton can move forward with plans to produce EVs in China. 

The Chinese government has maintained tight control on the release of new licenses for vehicle production to prevent excess manufacturing capacity.

The policy has left EV startups in China with two options to start output: acquire an existing automaker or contract manufacturing to an existing auto manufacturer. 

Byton, previously known as Future Mobility, was established by former BMW Group executives last year in the east China city of Nanjing. Its CEO, Carsten Breitfeld, was a leading engineer for BMW's i8 electric car. 

With the financial backing of Chinese retailer Suning Holdings Group and auto dealer China Harmony New Energy Auto Holding, Byton plans to sell its first vehicle, an electric sedan, in China in 2019. 

Related Stories
  • Karma to launch China sales in second half
  •     --Published:2019/19/4
  • Toyota sells EV tech to Chinese startup Singulato
  •     --Published:2019/16/4
  • VW plans Tesla-fighting electric crossover
  •     --Published:2019/16/4
  • Automotive Energy Supply targets EV makers with first China battery plant
  •     --Published:2019/16/4
  • China's $18 billion EV bubble at risk of bursting
  •     --Published:2019/16/4
  • Geely launches electric vehicle brand Geometry
  •     --Published:2019/12/4
  • China EV startup Bordrin skips flash, keeps real-car focus
  •     --Published:2019/9/4
  • U.S., in new EV supply chain push, sets sights on China
  •     --Published:2019/9/4
  • Daimler, BMW to limit scope of venture to affordable China EV, report says
  •     --Published:2019/5/4
  • Chinese brands, unfazed by lower subsidies, prep more EVs
  •     --Published:2019/5/4
  • Chinese EV startup Nio restricts its IPO banks from working for rivals, sources say
  •     --Published:2019/2/4
  • MG launches first EV in China
  •     --Published:2019/2/4
  • What's behind Beijing's steeper-than-expected cuts in EV subsidies?
  •     --Published:2019/29/3
  • Daimler to recast Smart with Geely as China-based EV brand
  •     --Published:2019/29/3

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     


    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.