Local Government Pledges Support for Struggling Chinese EV Startup Singulato
Yang Haiyan
/SOURCE : yicai
Local Government Pledges Support for Struggling Chinese EV Startup Singulato

(Yicai Global) Dec. 28 -- A city government in China's Anhui province has vowed to support cash-strapped electric carmaker Singulato to help it get a factory up and running and obtain certification as an electric vehicle manufacturer.

The Tongling Economic and Technological Development Zone, run by Tongling government, wants to help Singulato's operator Zhiche Youxing Technology obtain its production license by early 2021, the zone's managing body said in a statement yesterday. Singulato began building its first factory in the area this month and hopes to have it finished in August.

The company, founded by former Qihoo 360 Vice President Shen Haiyin, has obtained CNY7 billion (USD1 billion) in funding to date but has yet to start mass producing any cars. Rumors began circulating that the firm was running out of money in October, and had suspended salary payments.

In return for the state support, Singulato will shift its headquarters to Anhui from Beijing and use its unit in the provice when it lists to go public -- something the Tongling government also plans to help with. The local authority was an early investor in the firm, which was founded in 2014, though the statement did not disclose its shareholding.

Shortly after the investment, the pair agreed to build the CNY8 billion (USD1.2 billion) electric car industrial park capable of producing 200,000 vehicles a year.

Editor: James Boynton

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Keywords: Singulato , Electric Cars