Evergrande ‘ghost factory’ exposed by furious mob

First it was bondholders, then it was real estate investors, now it’s new car buyers who are furious at China Evergrande.

The embattled company’s automotive arm, ‘China Evergrande New Energy Vehicle Group’, is under fire for allegedly failing to deliver what it promised to paying customers.

It’s understood that in response, some of those customers paid a visit to one of the car maker’s factories and were shocked by what they found.

(Or should we say, what they DIDN’T find.)

The video

A short video clip circulating online purportedly shows those customers arriving at the manufacturing workshop only to find it completely empty.

Some shouting can be heard in the background and one social media user has described the gathering of the customers as a “protest”.

Inside Chine Evergrande’s ‘ghost factory’

The customers have reportedly paid deposits on Hengchi cars, but since been informed of delay after delay in them being ready to take home.

Evergrande ghost factory
Evergrande Auto’s Hengchi 4

Asia Markets is yet to track down the original poster of the video, however our enquiries have so far found no reason to question its legitimacy.

Months of delays

Evergrande’s all-electric Hengchi 5 was originally to be launched in May of this year, but was postponed on several occasions.

Recent media suggests Evergrande is now publicly saying mass-production won’t start until next month.

It’s unclear when the customers in the video paid their deposits or when they were told to expect their cars.

One article reports that “pre-orders for the electric SUV had far exceeded the company’s expectations”.

Evergrande Ghost Factory
Evergrande’s Hengchi 5 (source: carscoops.com)

Property woes

Evergrande group continues to battle major debt issues, which are causing social unrest across China.

Those issues stem primarily from its core real estate business, and the company has promised to collect vehicle deposits under its auto arm and ensure the funds will not be used for other projects.

However, it’s unlikely the Chinese people will have much trust in Evergrande or indeed in any institution given the recent run on some Chinese banks, which led to dramatic protests.