Wanxiang founder may be on collision course with Tesla’s Elon Musk

Article by Christian A., on May 21, 2014

If the United States has Elon Musk, China has its own Lu Guanqiu. Lu is chairman and founder of Wanxiang Group Corp., the company who acquired Fisker Automotive Holdings Inc. at a bankruptcy auction earlier this year. Lu has disclosed to Bloomberg in an exclusive interview that he is planning to build electric cars in the US and eventually in China – a plan similar to what Musk has in mind – even if it causes Wanxiang to burn its cash and collapse financially.

He said that he will invest every cent that Wanxiang earns into making EVs. Musk is currently implementing an ambitious expansion plan for Tesla, which has been reinforcing its workforce to build its hot-selling Model S. Both Musk and Lu are planning to break beyond US borders to market their EVs in pollution-laden China, placing them in a possible collision course.

But who will succeed? Harry Chen, an automotive analyst with Guotai Junan Securities Co. in Shenzhen, China, told Bloomberg that Wanxiang has managed to gain access to technologies that might take it years to develop thanks to its acquisition of Fisker.

He noted that production of EVs in the US is just a stepping stone for Wanxiang, since manufacturing in China would be the ultimate ingredient for success. He noted that Lu has been having a desire to produce cars since the 1980s.

With Fisker on his hand, Lu could now fulfill that desire, building on the carmaker’s remains. Fisker is known for its Karma plug-in hybrid sports car.

Musk, meanwhile, is forecasting China to become Tesla’s largest market, eventually overtaking the US.

Fisker filed for bankruptcy in late 2013, and prompted a bidding war between Lu’s Wanxiang and Richard Li’s Hybrid Tech Holdings LLC – who were both aiming to get their hands on Fisker’s three dozen current and pending patents. Wanxiang won the auction with a $149.2 million offer. [source: Bloomberg]

Topics: tesla, elon musk

If you liked the article, share on:

Comments

Recommended

The Insurance Institute for Highway Safety (IIHS) has given its Top Safety Pick+ award to the redesigned version of the 2017 Kia Cadenza. This was a result of excellent a...
by - April 29, 2017
It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
If you’ve ever visited an arcade, chances are you have already seen a Logitech G920 wheel. If that doesn’t ring a bell, it’s the steering wheel that you use when...
by - April 28, 2017
Toyota Motor Corporation disclosed that it will be bringing two of its Mirai fuel cell vehicles to China by October of this year. Tests will then be conducted on these...
by - April 28, 2017
Jaguar fans, as well as auto enthusiasts in general, has a reason to celebrate this week as the brand gave everyone a peek of the new 2018 XF Sportbrake. This...
by - April 28, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries