Mar 23, 2020 (China Knowledge) - Company's insiders revealed yesterday that Zhaoqing Xpeng New Energy Investment Co., Ltd. (referred as "Xpeng") has acquired Guangdong Fudi Automobile Co., Ltd. (referred as "Fudi"). With this acquisition, Zhaoqing Xpeng's factory will have the production qualification and full manufacturing facilities to produce its Xpeng brand of EVs, and at the same time, improve the Chinese EV start-up’s future fundraising as a full-fetched carmaker.
Earlier in February this year, its investment holding company ZhaoqingXpeng was thought to just a set up with registered capital of RMB 100 mln without a trace of intention to acquire manufacturing plants. At that time, Xpeng even said the newly established company is to improve its industrial layout on supply chain. But, it turned up, in fact, prepared to acquire Fudi.
Prior acquisition of Fudi, due to a lack of production qualification, Xpeng had to rely on original equipment manufacturer (OEM) production model, this is like other emerging EV automaker, including more popular Chinese EV company Nio (NIO).
Planned for this year, Xpeng will launch its second car model P7, which will be put into production at its Zhaoqing’s assembly plant and be able to deliver by the second quarter. With the acquisition of Fudi based located at nearby Foshan city in Guangdong Province, Xpeng's P7 production will proceed as planned.
In addition to its new manufacturing capability and improved supply chain, Xpeng could see a rise in its valuation through acquisition of Fudi with better access to capital market for future growth as a full-scale EV carmaker.
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