Eliza Wong
After months of silence, WM Motor’s official WeChat account published a ‘Supplier White Paper’ on September 6, 2025, outlining a revival plan backed by new investor Shenzhen Xiangfei. The document reveals a three-phase strategy to resume production, settle debts, and target ambitious sales goals—but industry experts remain skeptical. With over 20 billion USD in liabilities and a disrupted supply chain, the road to recovery looks steep.
The Long Road to Bankruptcy and Restructuring
WM Motor Technology Group filed for bankruptcy restructuring in October 2023, which was accepted by the court two months later. By early 2024, court-appointed administrators began seeking strategic investors. The company’s assets were valued at just 3.988 billion yuan, dwarfed by liabilities of 20.367 billion yuan. Potential investors were drawn to WM’s production licenses, intellectual property, and manufacturing infrastructure—key assets in China’s competitive EV market.
Court-Led Restructuring Process
The restructuring process involved multiple rounds of negotiation with creditors and investors. In January 2025, a draft reorganization plan was presented, with Shenzhen Xiangfei emerging as the only serious bidder. The court approved the plan on April 3, 2025, paving the way for Shenzhen Xiangfei to take over WM’s operations.
Shenzhen Xiangfei’s Revival Strategy
Shenzhen Xiangfei, established in September 2023, has outlined a clear plan to revive WM Motor. The company aims to inject an initial 1 billion yuan (approx. 140 million USD) to upgrade equipment, restore supply chains, and develop new models. Local government support in Wenzhou is also highlighted, including assistance with financing and logistics.
Three-Phase Business Plan
– Phase 1 (2025–2026): Restart production of WM EX5 and E.5 models by September 2025, targeting annual sales of 10,000–20,000 units. Expand into Southeast Asia and Middle East markets via a KD assembly plant in Thailand.
– Phase 2 (2027–2028): Introduce new A00-class sedan and compact SUV models. Increase annual sales target to 250,000 units by 2027 and 400,000 by 2028.
– Phase 3 (2030): Achieve annual production of 1 million vehicles.
Debt Settlement and Supplier Relations
A major hurdle for WM Motor’s revival is managing its enormous debt. According to the white paper, creditors owed less than 150,000 yuan will receive full payment, while larger claims will be partially settled via a trust mechanism. Rebuilding supplier trust is equally critical. The company claims to have contacted 215 former suppliers, offering incentives like early payment and production priority.
Supply Chain Challenges
One automotive factory manager noted that resuming production isn’t just about assembling parts—it requires deep collaboration with suppliers, especially for new model development. Battery suppliers, for instance, need to co-develop solutions tailored to specific vehicle designs. Without stable partnerships, achieving mass production remains difficult.
Baoneng Group’s Role in the Revival
Shenzhen Xiangfei’ ownership structure has ties to Baoneng Group, a conglomerate with a mixed track record in automotive manufacturing. Baoneng’s subsidiary, Youboli Auto, recently launched its own A00-class model, suggesting strategic synergies with WM’s planned lineup. However, Baoneng Auto Group faces numerous legal disputes, with involved amounts exceeding 20.8 billion yuan.
Previous Failed Rescue Attempts
WM Motor’s restructuring isn’t its first rescue attempt. In early 2023, Apollo Intelligent Mobility Group agreed to acquire WM for 3.918 billion HKD, but the deal collapsed by September. This history raises questions about Shenzhen Xiangfei’s ability to succeed where others failed.
Can WM Motor Truly Revive?
WM Motor was once considered a peer to NIO, XPeng, and Li Auto—often referred to as the ‘Big Four’ of Chinese EV startups. Founded in 2015 by Freeman Shen Hui (沈晖), a former Volvo and Geely executive, the company raised over 35 billion yuan in funding and operated two factories with a combined annual capacity of 250,000 units. Despite these advantages, WM never exceeded 44,000 annual sales.
Market Realities and Challenges
China’s EV market has only grown more competitive since WM’s decline. Brands like BYD, Tesla, and Aito dominate, while newcomers like Xiaomi enter with aggressive pricing. WM’s planned models—including the EX5, which launched back in 2018—may struggle to differentiate in a crowded field. Moreover, achieving a production target of 1 million units by 2030 seems overly optimistic given the company’s historical performance.
Final Thoughts
WM Motor’s proposed comeback is a bold gamble—one that depends on careful debt management, supplier cooperation, and strategic execution. While government support and new investment provide a lifeline, the company must overcome deep-seated operational and market challenges. For industry watchers, WM’s story serves as a cautionary tale on the risks of rapid expansion in the EV sector. Only time will tell if this revival attempt can defy the odds.
For those tracking China’s electric vehicle industry, WM Motor’s journey offers critical insights into restructuring, supply chain dynamics, and strategic pivots. Follow further developments to see whether this once-promising automaker can truly stage a comeback.
