Introduction

Turning two negatives into a positive is no easy feat.

"Has WM Motor been acquired by Baoneng Auto? Who is saving whom here? Is this a case of 'making two negatives into a positive'?"

Recently, media reports suggested that WM Motor had been acquired by Baoneng Auto. Insiders from Baoneng Auto revealed, "The company has completed the acquisition of WM Motor and is currently in the crucial stage of asset transfer, including production qualifications."

Upon learning of this news, some media colleagues posed questions and jokes. Indeed, on one hand, we have Baoneng Auto, which was forced to refute rumors and proclaim "I'm still alive" just a few days ago, with an executed amount exceeding RMB 12 billion. On the other hand, there's WM Motor, undergoing bankruptcy reorganization with total liabilities exceeding RMB 20 billion. Both are deeply mired in debt crises, making it difficult to ascertain who is saving whom.

However, while everyone was still pondering over this event, some media outlets visited Baoneng Auto's exhibition center at No. 406 Liyuan Road, Luohu District, Shenzhen, and found two WM Motor vehicles on display alongside Baoneng's Youbaoli A3 model. Store staff clearly stated that WM Motor had been "acquired" by Baoneng Auto, effectively stamping the authenticity of the event.

Regarding this, "Auto Commune" inquired with relevant personnel from Baoneng Auto but did not receive a positive reply as of the time of publication. However, extending the timeline reveals the possibility of this event. In WM Motor's reorganization plan earlier this year, the only intended investor was Shenzhen Xiangfei Automobile, backed by the debt-ridden Baoneng Group.

Simultaneously, on a certain job recruitment platform, Xiangfei New Energy Automobile Group has been recruiting in Qingpu, Shanghai, and Dongtou District, Wenzhou, where WM Motor's headquarters and factory are located. Therefore, if Baoneng's acquisition of WM Motor is true, this event would mark the beginning of the intertwined destinies of these two emerging forces that have encountered tumultuous times.

01 The 'Revival Trend' of Emerging Forces

We all know that competition in the current auto market is intensifying, with price wars and public opinion wars escalating, and smoke filling the air. Major automakers are fiercely competing in various market segments. However, as leading automakers engage in frontal combat in the new energy and fuel vehicle tracks, the revival trend of emerging brands is gaining momentum in the corners of the auto market.

Driven by capital, policies, and technological iterations, emerging brands once deeply mired in bankruptcy crises are now attempting to return to the track through reorganization, strategic capital injection, or overseas transformation.

For instance, Zhidou Automobile, hailed as the "pioneer" of domestic new energy vehicles, has completed its reorganization with the support of capital from Geely, Aima, etc., and its new vehicles aim to compete with Hongguang MINI EV for the A00 market. Leiding Automobile, once a leading manufacturer of "old man's joy" vehicles, has also shown confidence in receiving payment in supplier documents. HiPhi Automobile has reportedly received strategic investment from investment institutions, and brands like Jiyue have also quietly restarted...

Therefore, whether it's Baoneng Auto, WM Motor, or even other fallen emerging brands, there is a possibility of a comeback. After all, no one wants to casually leave the table.

Particularly, the industry winter has increasingly prompted this desperate struggle for survival. In 2024, China's new energy vehicle sales exceeded 10 million units, with a penetration rate of over 40%. The forecasted growth rate for 2025 is nearly 30%. The government continues to provide subsidies and tax incentives, and local trade-in policies continue to stimulate consumption, providing a window of opportunity for these tail-end brands to make a final push.

However, when Baoneng and WM Motor, these two 'losers', come together, it undoubtedly adds some topicality and uncertainty to their prospects.

02 Baoneng Acquires WM Motor: Attempting to 'Make Two Negatives into a Positive'?

First, let's consider the 'acquirer', Baoneng Auto, which is currently in a dire situation. Tianyancha shows that the executed amount of Baoneng Automobile Group Co., Ltd. has exceeded RMB 12 billion, and incidents of employees demanding salaries have occurred frequently. The cumulative executed amount under Yao Zhenhua's name has approached RMB 50 billion, with the executed amount of its real estate sector reaching RMB 27.5 billion. Yao Zhenhua himself has been listed as a dishonest person subject to execution.

Not only that, some Baoneng companies are displayed on the National Enterprise Credit Information Publicity System with notices such as "This enterprise has issued a dissolution announcement," "This enterprise has issued liquidation group filing information," and "This enterprise is making a statement on the invalidation of its business license." Based on this "barely keeping afloat" situation, there are even rumors that Baoneng Auto has already "gone bankrupt."

In response, Baoneng Auto recently issued a statement emphasizing that although some directors, supervisors, and other senior management personnel have resigned, it does not affect the company's normal operation and business. All company businesses are being carried out normally without any impact, and new models will soon be launched!

It's worth noting that the comments below Baoneng Auto's official WeChat account are very lively, with netizens joking that it "looks like a large debt collection scene." Among them, comments like "It's unjust to owe wages! Pay me my wages! Pay back what you owe!" "Can you pay me my salary during normal operations? How to solve the problem of unpaid wages?" "Wages have been owed for nearly 4 years, and 4 years of wages during normal operations?" abound.

So, can Baoneng Auto, which is "barely keeping afloat," really revitalize WM Motor?

Additionally, the "acquiree," WM Motor, is also in a difficult situation.

Back in January 2025, the draft reorganization plan of WM Motor was unveiled at the creditors' meeting, painting a dazzling picture of recovery: resume production in 2025, achieve sales exceeding 600,000 units in 2027, launch 10 new models globally in 2029, and achieve the grand goals of annual sales of 1 million units and revenue of RMB 110 billion.

This plan even envisages a capital market valuation of RMB 150 billion.

However, ideals are full, but reality is harsh. Data released by the Shanghai Third Intermediate People's Court shows that WM Motor has valid claims exceeding RMB 14.8 billion, with an additional RMB 11.2 billion in suspended claims. Just to complete the handover and initially resume production, billions of cash are needed; if WM Motor is to truly restart, the funding gap may exceed RMB 10 billion.

Nowadays, how easy is it to revitalize WM Motor?

On one hand, after several years of silence, WM Motor has significantly lagged behind leading brands such as Huawei and XPeng in the fields of autonomous driving and battery technology. Based on the R&D investment of leading emerging forces in recent years, the funds needed to make up for the generational gap far exceed the scale of RMB 10 billion. On the other hand, issues such as the collapse of the after-sales system and lagging infotainment systems have led to a collapse in reputation. There are even WM Motor owners self-deprecating on social media: "My WM EX5 has become an 'orphan car.' Who still believes in this brand?" The difficulty of rebuilding brand trust is evident.

Coupled with debts of tens of billions like a mountain pressing down, the RMB 14.8 billion in valid claims and the RMB 11.2 billion in suspended claims are like the sword of Damocles hanging over the path of reorganization, hanging over the heads of WM Motor and Baoneng Auto.

03 The Demise of Tail-end Players

The table is not something you can just sit at whenever you want.

Currently, the knockout game in the automotive industry has entered a brutal stage. Zhu Huarong, Chairman of Changan Automobile, predicts that in the coming years, 80% of brands will cease operations. Yin Tongyue of Chery believes that "perhaps only 5 new energy vehicle companies will survive." Yu Chengdong of Huawei holds a more radical view: "It's highly likely to be less than 5." Even Zhu Jiangming of the relatively optimistic NIO Auto believes it will not exceed 10...

Against this backdrop, the revival of tail-end emerging forces will also face heavy compression.

On one side are BYD with annual sales exceeding 4 million units and traditional giants such as Geely, Changan, and Great Wall constantly seizing territory. On the other side, the Huawei Smart Selection mode is driving automakers' sales to soar, and Xiaomi's SU7 became a hit upon its launch. Additionally, the electrification transformation of joint venture automakers, both in terms of product quantity and technology scale, is quietly accelerating...

These accelerated leads from leading automakers, continued investments from cross-border giants, and international brands lowering their stance have made the survival space for tail-end emerging forces increasingly narrow.

Therefore, many industry insiders hold a pessimistic attitude towards WM Motor's revival. A securities analyst bluntly stated: "Unless there are other intentions, it is by no means easy to simply revitalize WM Motor." Even more cruelly, there is no precedent in the industry for a tail-end emerging force successfully reviving, and recently, no domestic emerging force in the auto industry has received a merger or reorganization offer from an A-share listed company.

When Shenzhen Xiangfei's investment of RMB 10 billion meets Baoneng Auto's executed debt of over RMB 11.7 billion, and when WM Motor's valid claims of RMB 14.8 billion collide with the fantasy of RMB 110 billion in revenue by 2029, this revival experiment is inherently fraught with difficulty. As for whether Baoneng Auto can finally produce the first 'new WM Motor' at its Wenzhou factory, the answer is not in the auto showroom but in the cruel laws of the market.

Especially for those players without core competitiveness, even a fleeting recovery is a fleeting hope, and they will ultimately become echoes of capital bubbles.

Editor-in-Charge: Du Yuxin, Editor: Chen Xinnan