China’s Wanxiang gets approval to produce Karma electric cars
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Wanxiang Group, a major Chinese auto parts supplier which almost three years ago bought the assets of defunct California-based plug-in hybrid carmaker Fisker Automotive, has received approval from local regulators to produce electric vehicles in China.
According to a notice on Friday on the website of the National Development and Reform Commission (NDRC), China’s top economic and industrial planner, Wanxiang has the green light to build a factory with capacity to produce 50,000 electric cars a year.
The move means the former Fisker Automotive, which was founded in part with a U.S. government loan and ceased production of its $100,000 plug-in electric hybrid sports cars in 2012 after a series of technical glitches and cost overruns, continues to survive under Chinese ownership after Wanxiang gave it a second life.
Wanxiang later changed Fisker’s name to Karma Automotive.
Wanxiang, a Hangzhou-based company which in 2012 also acquired U.S. lithium-ion battery maker A123, became the sixth company to be allowed to produce new-energy vehicles in China.
More companies are currently being encouraged to enter the automotive industry in China but only if they are willing to produce so-called new-energy cars, mostly all-electric battery cars and heavily electrified plug-in hybrids.
China has been making a push for electrically-propelled cars by offering incentives to buyers, forcing global automakers to share their technology, and opening its market to tech firms and others to produce electric vehicles.
Beijing wants such vehicles to serve the mass market, and hopes the technology will help its auto industry close a competitive gap with global rivals which have a century’s head-start in traditional combustion engines.
Aside from Wanxiang, NDRC has approved five companies to produce new-energy vehicles, including Ch-Auto’s Qiantu Motor, and Changjiang Auto. More companies such as WM Motor, Future Mobility, Singulato Motors are seeking approval.
Questions & Answers
Q.Which Chinese regulatory body gave Wanxiang Group approval to produce electric vehicles?
Which Chinese regulatory body gave Wanxiang Group approval to produce electric vehicles?
Wanxiang Group received approval from the National Development and Reform Commission (NDRC). This is China's top economic and industrial planning body, which announced the decision on its website.
Q.What production capacity has been approved for Wanxiang's new electric vehicle factory?
What production capacity has been approved for Wanxiang's new electric vehicle factory?
The approval allows Wanxiang to build a factory with the capacity to produce 50,000 electric cars annually. This move supports their efforts with the former Fisker Automotive brand.
Q.What was the previous name of Karma Automotive before Wanxiang acquired it?
What was the previous name of Karma Automotive before Wanxiang acquired it?
Karma Automotive was previously known as Fisker Automotive. Wanxiang Group changed the name after acquiring the assets of the defunct California-based plug-in hybrid carmaker almost three years ago.
Q.How many other companies have received approval from the NDRC to produce new-energy vehicles in China?
How many other companies have received approval from the NDRC to produce new-energy vehicles in China?
Aside from Wanxiang, the NDRC has approved five other companies to produce new-energy vehicles. These include Ch-Auto’s Qiantu Motor and Changjiang Auto, as China encourages more firms into the sector.
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