Due to various issues and financial uncertainty, WM Motor has filed for chapter 11
Electric vehicles (EVs) may be all the rage today. But despite the growing popularity of such vehicles, some automakers have continued to struggle to make a profit in making and selling EVs thanks to a wide array of circumstances.
Recently, WM Motor (who handles Weltmeister) filed for bankruptcy and is looking to reorganize itself. The automaker announced that while they strive to provide high-quality products along with excellent services, a number of events plagued the company which resulted in lower sales and operating difficulties.
From the pandemic, a sluggish capital market, raw material prices fluctuating, and difficulty in obtaining developmental funds, WM Motor faced turbulent times. The local government of Wenzhou did help WM Motor get back on its feet earlier this year.
WM Motor was then set to be bought by Apollo Future Mobility Group for USD 2.02 billion. Unfortunately, the mobility group backed out of the deal citing market uncertainty and the PRC’s uneven economic recovery. WM Motor was then left with no choice but to file for bankruptcy.
This comes as a stark contrast to several years ago as WM Motor was regarded as one of the most promising EV brands in the PRC. It was backed up by big conglomerates such as Baidu and Tencent and was able to sell around 35,000 EVs in 2021 and 2022. However, that figure went down to 1,387 vehicles due to the aforementioned issues and increasing competition from new EV brands including a price war that was started by Tesla.
WM Motor said that they will restructure themselves, adjust corporate strategies, find ways to solve financial debts, and seek new investors to help in reorganizing the company. In addition, the automaker is looking to reduce costs, improve efficiencies, as well as make the brand sustainable.
But what will happen with Weltmiester Philippines which started operating last year? In a statement sent to us yesterday by its official distributor EVOxTerra Inc., they wish to assure their valued customers and stakeholders that despite the bankruptcy of WM Motor, EVOxTerra Inc. is committed to providing after-sales service for all existing customers of Weltmeister.
They will also continue to honor all existing warranties and service agreements for WM Motor vehicles. From providing maintenance repair and spare parts, the company wants to reassure that they will be able to assist with any inquiries, concerns, or support customers may require.