Shanghai (Gasgoo)- Chinese EV startup Xpeng Motors has reportedly obtained the car-building qualification by investing in a Foshan-based complete vehicle manufacturer.
According to the business data platform Tianyancha, Zhaoqing Xiaopeng New Energy Investment Co.,Ltd., an investment subsidiary of Xpeng, in recent days wholly acquired the stake in Guangdong FODAY Automobile Co.,Ltd. at RMB16 million. Currently, Xpeng's president Xia Heng and vice president He Tao have taken chairs at FODAY's senior management.
FODAY is regarded as a time-honored one among Guangdong's automobile companies. It not only produces complete vehicles like pickups, SUVs and SRVs, but also manufactures vehicle bodies and auto parts. Up until now, it has built long-term partnership with OEMs like Foton Motor, Dongfeng Motor and Great Wall Motor.
The last business move indicates that the Guangzhou-based EV startup has determined to obtain the qualification to making vehicle by itself via a buyout of an existing complete vehicle manufacturer, said a local media outlet. However, Xpeng replied that the factual result should be in accordance with the official announcement given by the administrative department for commerce and industry.
The acquisition will do no harm to Xpeng's finance performance, and the company's cash flow stays healthy now, according to a person briefed on the matter. Besides, the purchased side also is in sound status in terms of businesses and assets, making the transaction a fruit born from a win-win decision to improve the allocation of high-quality industrial resources.
The source also added that Xpeng has kept a decent cooperation with Haima Automobile, which is still producing the Xpeng G3 SUVs at the Zhengzhou-based intelligent plant.
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