China’s Evergrande sets up Joint Venture with German Hofer Powertrain
Evergrande continues to raise stakes in automobile sector
Evergrande Health Industry Group, a Hong Kong-listed subsidiary of Evergrande Group, announced an agreement with German company Hofer Powertrain on Wednesday, a system supplier of Powertrain Solutions. The agreement aims to further establish a joint venture in Germany.
According to the agreement, Evergrande Health will hold 67 percent of shares in the joint venture, while Hofer will hold the remaining 33 percent.
In conjunction with Hofer Powertrain’s technology, research, development and manufacturing team, the new venture will focus on developing integrated powertrain core technology and establish an advanced research and development production base in China, Evergrande Health said.
The company said its strategic alliance with Hofer Powertrain will open up access to world-leading integrated electric powertrain system technology, thus establishing powerful competitive advantages in the new energy vehicle powertrain field.
This move marks Evergrande’s sixth push into the new energy vehicle sector this year. On its official website, the company said it “has completed the overall arrangement for the whole industry chain of new energy vehicles and striven to become the largest and strongest new energy vehicle group corporation worldwide in 3-5 years, contributing to China’s transformation from an automaker to an auto power”.
On Jan 15, Evergrande Health purchased a 51 percent shareholding in Sweden-headquartered NEVS, a global electric vehicle company focused on intelligent automobiles, for $930 million.
Then on Jan 24, the company’s wholly-owned subsidiary Evergrande New Energy Power Technology (Shenzhen) Co acquired 58.07 percent equity interest of Shanghai CENAT New Energy Co Ltd for more than 1 billion yuan. Shanghai CENAT New Energy is one of the leading enterprises in the industry focusing on ternary pouch type power battery.
Five days later, Evergrande Health announced that it had also taken a 150 million euro stake in Koenigsegg and joined hands with the world-leading luxury car manufacturer to found a joint venture company. The joint venture will be devoted to research, development and production of the world’s top-level new energy vehicles.
On March 15, Evergrande Health purchased 70 percent stakes in TeT Drive Technology Co Ltd for 500 million yuan. TeT wholly-owns e-Traction, a Dutch company with advanced in-wheel motor technology for commercial vehicles.
On May 30, it announced its subsidiary NEVS has acquired UK company Protean Holdings Corp by effecting a merger of Protean with and into Virtue Surge Ltd, a subsidiary of NEVS. Protean’s in-wheel motor technology for passenger cars has been applied in auto companies such as Mercedes-Benz and Ford.
Evergrande Health has not disclosed the amount of money spent on its last two acquisitions, but its disclosed investment in the automobile industry has so far reached 28.4 billion yuan, according to a report by Paper.cn.