Eliza Wong
Summary Points
– WM Motor aims to restart EX5/E5 production in September 2025 targeting 10,000 units this year
– Investor Shenzhen Xiangfei (linked to Baoneng Group) leads court-approved restructuring
– Three-phase plan targets 100,000 units by 2026 and 1 million by 2030
– Strategy includes international expansion through Thailand factory and IPO preparation
– Significant skepticism remains about financial viability given Baoneng’s debt
Former Star Electric Vehicle Brand Announces Resurgence Strategy
Early reports on July 15 reveal electric vehicle manufacturer WM Motor’s blueprint for revival after its financial collapse. Acting through court-appointed investor Shenzhen Xiangfei Auto Sales Co., the reorganized entity has detailed an ambitious WM Motor revival plan targeting production resumption at its Wenzhou facility this fall. Documents obtained by former employees outline a three-stage growth trajectory aiming for 10,000 sales by end of 2025, scaling to 1 million units annually by 2030. This unexpected return comes after the company’s much-publicized bankruptcy and factory closures, though significant questions linger about funding sources given Baoneng Group’s well-documented financial woes. The WM Motor revival plan represents one of China’s boldest industrial rescue attempts in the competitive EV sector.
The Three-Phase Growth Roadmap
At the core of WM Motor’s survival strategy is a meticulously structured operational framework running through 2030. The approach prioritizes vehicle production relaunch while steadily expanding global positioning.
Revival Phase: 2025-2026 Targets
– September 2025: Restart EX5 SUV and E5 sedan production in Wenzhou
– Achieve 10,000-20,000 vehicle sales during initial relaunch window
– Establish Thailand knockdown (KD) assembly operations targeting ASEAN markets
– Expand Middle Eastern distribution channels before Q4 2026
– Secure component supplier agreements by December 2025
This foundation-building phase requires reactivating WM Motor’s dormant manufacturing lines while simultaneously entering export markets. The Thailand factory initiative is particularly strategic – according to ASEAN Automotive Federation data, the region’s EV sales surged 171% year-over-year in 2023, creating ideal conditions for reentry.
Development Phase: 2027-2028 Expansion
– Scale production capacity to 400,000 units annually
– Introduce vehicles featuring Level 3 autonomous driving capabilities
– Integrate AI throughout supply chain operations including predictive maintenance
– Establish dealer networks in 15+ new countries
– Begin IPO preparation with target valuation assessment
Production increases during this period depend heavily on proving market acceptance of relaunched models. WM Motor must address perceptions about quality issues that previously impacted brand reputation.
Leap Phase: 2029-2030 Milestones
– Achieve 1 million vehicle annual production volume
– Generate targeted RMB 120 billion revenue
– Develop comprehensive smart mobility ecosystem
– Introduce next-generation battery technology
– Complete public listing process
Such an aggressive timeline faces material constraints – even established manufacturers like BYD require years to scale from 400,000 to 1 million units across multiple factory locations. The WM Motor revival plan demands exceptional speed, efficient resource allocation, and flawless technology integration to become achievable. Achieving late-2025 production goals remains the required first step toward validating longer-term targets.
Shenzhen Xiangfei’s Pivotal Role
Corporate records reveal Shenzhen Xiangfei Auto Sales Co. maintains deep connections to embattled conglomerate Baoneng Group via legal person and shareholder relationships. Ownership analysis shows:
– Shenzhen Xiangfei legal representative exerts controlling interest in Baoneng Auto subsidiaries
– Investment partners hold cross-ownership positions across multiple Baoneng Group entities
– Operations leadership includes executives from Baoneng manufacturing divisions
When a Shenzhen court approved Xiangfei’s WM Motor restructuring proposal on April 3, 2024, it effectively transitioned control to Baoneng’s management network. This alignment creates complex operational dynamics – Baoneng Auto’s own manufacturing operations stalled during 2023 after failing to maintain component supplies amid RMB 100+ billion corporate debts. Legal disputes resulted in numerous courts placing Baoneng Group Chairman Yao Zhenhua (姚振华) under consumption restrictions since 2022.
Financial and Operational Challenges
Both WM Motor’s resurrection timeline and Baoneng’s troubled recent history present unique implementation hurdles needing resolution before September production.
Funding Uncertainties
Baoneng Group’s current RMB 180+ billion liabilities severely constrain financing options for the WM Motor revival plan. Multiple capital sources could potentially mitigate this:
– State investment vehicle contributions: Eastern provinces demonstrate increased support for viable EV projects
– Strategic equity partnerships: Could include battery manufacturers or Gulf sovereign funds
– Asset-backed lending: Using factory facilities as collateral
– Local subsidies: Zhejiang province offers EV production incentives
Three former WM Motor department heads shared concerns with interviewers regarding implementation risks. One purchasing manager stated: “Without confirmed component prepayments, suppliers won’t engage. Our previous supply debts remain unresolved.” Addressing an estimated RMB 3.5 billion in existing obligations is essential to reneweling partnerships.
Market Positioning Difficulties
Even with successful production initiation within WM Motor’s revival plan, re-entering China’s hypercompetitive EV marketplace presents steep challenges:
– Price drops: Benchmark EV models now cost 24% less than 2019 averages eroding margins
– Intense competition: BYD and Tesla control 61% of domestic premium segment WM targets
– Product relevance: EX5/E5 platforms predate competitors’ current tech offerings
– Dealer confidence: Rebuilding sales network requires inventory guarantees
Technology development timelines compound difficulties – plans for advanced driver assistance systems require licensing technology WM lacks internally today.
International Growth Framework
Global expansion features prominently throughout WM Motor’s revival plan stages because export markets potentially offer more favorable entry conditions:
Southeast Asian Presence
The Thailand manufacturing initiative provides tariff advantages through Association of Southeast Asian Nations trade agreements. Objectives include:
– Q2 2026: Complete Thailand CKD assembly facility
– Capture 7% regional EV market share by 2027
– Leverage right-hand drive manufacturing capabilities
– Establish service centers across Indonesia, Malaysia, Vietnam
This WM Motor revival plan component faces competition from Chinese EV makers like BYD opening Thailand factories during 2024. Yet with ASEAN EV adoption still under 5% market penetration, opportunities remain significant if executed effectively.
Middle Eastern Diversification
Gulf Cooperation Council markets offer premium segment opportunities:
– Target UAE and Saudi Arabia luxury vehicle segments first
– Adopt region-specific thermal management systems
– Establish government fleet partnerships
– Explore mining rights access for battery materials
Wealth fund interests present possible strategic alignment opportunities given Riyadh’s Public Investment Fund existing involvement with EV venture capital.
Technology Roadmap Requirements
Achieving advanced capabilities described in the WM Motor revival plan depends on addressing key technological gaps:
– Outsource L2 autonomy from suppliers while developing proprietary L3 systems
– Implement AI-driven production analytics to improve quality control
– Form battery partnerships mitigating supply chain risks
– Establish cloud connectivity infrastructure
– Recruit technology talent lost during bankruptcy proceedings
While prior WM Motor operations featured adequate technology integration, competitors advanced significantly during its 18-month hiatus. Current timelines require accelerated partnerships as the planned September restart approaches.
Financial and Industry Analysis
Industry monitor reports identify several success indicators for monitoring the WM Motor revival plan progress:
– Essential equipment reactivation completion at Wenzhou before December
– Validation of initial RMB 3 billion funding tranche announcements
– Documentation of new supplier contracts replacing pre-bankruptcy obligations
– Third-party facility assessments confirming uninterrupted electricity/factory operations
– Anbang Automobile Industry Research Center projects September production commencement would require at least six months of prior reactivation work, creating significant scheduling pressures
Positive developments could shift industry perspectives regarding viability. Leading analyst Zhang Wei (张伟) noted: “Achieving 70% production tooling reactivation by November would mark credible progress toward WM’s targets.”
Realistic Path Forward
Several interdependent elements must converge within WM Motor’s revival plan timeline to overcome difficulties facing the September restart:
– Funding commitments: Require minimum USD 180 million for production restart before Q3
– Component sourcing: Replace defaulting suppliers with new agreements
– Regulatory compliance: Initial factories must renew manufacturing licenses
– Employee recruitment: Rehire specialized technical staff
– Quality verification: Third-party testing for all revived production lines
Supply chains staying intact gives this relaunch better prospects versus full startups – existing facilities reduce capital needs by an estimated 40%. Still, the regulatory environment shifted substantially since WM Motor ceased operations. Since 2023, all EV manufacturers must incorporate cybersecurity protocols satisfying revised GB/T standards yielding additional certification requirements.
Broad attention will follow summer developments testing this bold effort. If suppliers sign agreements by August and production stations successfully reactivate, the WM Motor revival plan could mark a remarkable corporate recovery. Until observable progress validates timelines, skepticism remains warranted given Baoneng Group’s unresolved issues. Industry participants should monitor Zhejiang provincial government announcements confirming regulatory approvals and employment initiatives demonstrating substance behind the plan’s ambitious goals. Further restructuring details could emerge during Q3 court proceedings attached to the reorganization – subscribe to our automotive industry updates for critical developments.
