This article only represents the author's own views.
The “old master” image apply for some sectors, turning “old” into “gold” for many tried-and-tested consumer brands. But it’s hardly the case in the fast-moving auto sector, especially one that’s making a massive shift to new energy vehicles (NEVs). The race into NEVs is mostly filled with new names like Tesla (TSLA.US) of the U.S. and Nio (NIO.US; 9866.HK) and BYD (1211.HK; 002594.SZ) of China, which were barely known just a decade ago. China’s WM Motor Technology Co Ltd. once hoped to become a standout in the field as well. But its recent road has been filled with potholes and setbacks, raising concerns about its future.
Its latest setback came earlier this month, when WM Motor's attempt at a $2 billion Hong Kong backdoor listing collapsed when its merger partner, Apollo Smart Mobility (0860.HK), slammed the brakes on the deal on Sept. 8. But WM Motor didn’t give up, even as it faces substantial challenges that threaten its very existence. Just days later on Sept. 11, U.S.-listed second-hand car dealer Kaixin Auto (KXIN.US) announced a plan to acquire WM Motor, in a deal that would give it 100% of the company in exchange for new Kaixin shares. More exact terms, including the value of such a transaction, were not disclosed.