Chinese Court Freezes USD10.7 Mln of WM Motor’s Assets in Second Court Ruling
Wei Wen
DATE:  Dec 28 2022
/ SOURCE:  Yicai
 Chinese Court Freezes USD10.7 Mln of WM Motor’s Assets in Second Court Ruling Chinese Court Freezes USD10.7 Mln of WM Motor’s Assets in Second Court Ruling

(Yicai Global) Dec. 28 -- A Chinese court has ruled that CNY75 million (USD10.7 million) of WM Motor’s assets be frozen as the Chinese new energy start-up looks set to lose another lawsuit, just after being found guilty of infringing trade secrets.

The latest case has been brought against WM Motor by Anji-Ceva Logistics, the logistics arm of auto manufacturer SAIC Motor, but no details of the nature of the lawsuit have been released.

This follows another ruling when WM Motor was ordered by a court in Shanghai to pay rival Zhejiang Geely Holding Group CNY7 million (USD1 million) in compensation for copyright infringement. This included CNY5 million in economic losses and CNY2 million in expenses. The court also ruled that WM Motor must stop using the five auto parts drawings that belong to Geely on its EX5 car.

These lawsuits are putting great pressure on the Shanghai-based electric car startup, which once ranked second in the country in the number of EV deliveries. But since 2019, the company has started to fall behind the competition.

In the first eleven months, deliveries from China’s leading EV makers, Nio, Xpeng, Li Auto, Hozon Auto and Leap Motor all topped 100,000 autos, while WM Motor’s shipments shrank 24.7 percent year on year to 29,437 units, according to the China Passenger Car Association.

As of the end of 2021, WM Motor had racked up losses of CNY20 billion (USD2.8 billion). That year, the firm delivered 44,200 vehicles, lagging behind Nio, Xpeng and Li Auto.

Editors: Shi Yi, Kim Taylor
 

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Keywords:   WM Motor