Dahua Creates New Car Subsidiary as Current Electric Car Firm Struggles

By Charles Rollet, Published Mar 19, 2020, 08:31am EDT

Dahua has started a new "intelligent" car subsidiary, even as its current electric vehicle startup struggles with lower-than-expected sales, negative media coverage, and a crashing PRC car market.

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Dahua's first move into electric cars was in 2015 when it founded Leap Motor, which has raised hundreds of millions of dollars ($290 million as we reported in December 2018 and an additional $51 million last August).

By starting another car company Dahua is investing more in this sector, despite its significant difference from video surveillance. In this note, we examine this move and what it means for Dahua, including:

  • Official Announcement
  • Intelligent Car Focus
  • Leap Motor Struggling With Sales
  • Finances Lead to Negative Coverage
  • Leap Motor's Other Problems
  • Broader Market Issues
  • Leap Motor No Response
  • Conclusion: Distraction For Dahua?

Official ************

** ******** **, *********** ** **************** ** *** ******* up * *** ******* called ******** ***** ********** Technology ******* (浙 江大华汽车技术有限公司).

*** ************* ******* ** $21 ******* (*** ******* RMB), **% ** ***** comes **** ***** ****** and **% ******** *****- *****'********* ******** ******* *******. *** **** ** the ******* ** ***** by * ***** *** firm *** ** ********** firm.

********** ******* ****** ******* but ***** ********** ********** will **** * ******* on *** ***** ** directors: *** ********* ** Dahua *** *** ** Leap *****.

Focused ** *********** ********

***** ********** ********** ** meant ** **** ***** expand *** ***** *** and ************** *********, **** the ************ ******* * wide (*** *****) ***** of *********** *********:

******** *****: ********* ********, technology ***********, ********* **********, technology ********, ********** ********, technology *********; ******** ***********; automobile ***** *** *********** manufacturing; ********** *** ***** wholesale; ********** ***** ******; general ********* ************* (********* special ********* *************); ********* and ********** ********* *************; computer ********, ******** *** peripheral ********* *************; ******* equipment *** ********** ********* manufacturing [...]

Leap ***** ********** **** *****

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*****'* ******* ******** ******* startup, **** *****, ** struggling, ****** **** **** one-tenth ** *** **** it ********* ********: ** November ****, **** ********* ** ********* **,*** ***** ** its ******** *** ***** (the ***) ** ****, but ***** ****** ********** ***** **** *******-******** 2019.

Finances **** ** ******** ***** ********

**** ******** $** ******* in ***** ****** $** million ** ****** ** 2019, *** *** ***** Automotive **********************.** ** ***** ***** car *******, **** ** expected ** **** ***** for ***** *** ** is **** ******** ** deliver ***** ****** ***** it ** ********** ** do.

*******, ****'* ********* ********* did ****** ** ******** media ******** **** ****, with *** *************** ********** **** *** "********* serious ******", * ********* ********* **** ****** "** ***'* spend ***** *********** *** cost ******** *** ******."

**** ******* *****, **** could *** **** *** specific ******* ********* *** much ******** ***** **** has **** *** ******* it **** **** ** raise **** ***** ****, a ********* ******* *** the *******-********* *** ******. (Leap ****'* ******* ** our ******** *** *******).

Shut ***** ** ****** ** *** ****

** ******** ****, ***** ***** *** **** down ** *** ****** of *** ******* **-** ******* ***** a ****** ***** ** do * ******** ******* as ** *** *******. Leap ***** ******* **** was *** * ***********, as *** **** ****** perform ******* ***** *******. If **** ** *** case, **** ***** ****** not **** ******* ** to ** **** *********. Moreover, ******** **** *************** ** ******* ** manufacturer *** ****** ****** in ******* ****, ****** Leap **** ** ******* for **** * *********.

Depending ** *** ***** *************

*** **** ************* ******* for **** ***** ** done ** * ******** manufacturer,********** **,*********************** ********** ****** ** its *** **** **** such ** ****** *****, resulting ******** *** *************** *** **** ****.**** ********** ***** ****,**** ***** **** **** bottleneck ***** ** "******** by *** *** ** August [****]". *****, ********* on * ***** ***** for ************* ** * risk.

'Awkward' ****** ********

**** ***** *** ** "awkward" ****** ********, *** PRC *** **** *************, ******* **** *** S01 ***** (******** *****) is ****** ***** (***** $15,000) *** *** **** features **** ***** ****é-***** cars, ***** *** ********* upmarket: "*** *** *** be **** ** ** a ***** ****é, ***** has ******* ******** *****".

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Broader ****** ******

***** *** **** ******* issues **** **** ***** cannot *******, *******:

  • *****'* *** ********* ******* **%*** ** *** ******* coronavirus ********, ***** *** also *********** ******* *** prices, ******** *** ****** of ******** ********.
  • *** *** *** *** a **** ******* ******** EV ****** ******** **** *** *****;*** **** ********* ********* in *** ******% ** **** **** go *****.
  • **** ****** *** ***********, China's ** ********* **** grappling **** "*****" ****** and ******* ********** ***** government ********* **** *******, the** *******. *****'* ******* ** maker, ***,*** ***** *****.*% ** ****. ******* large ** ************, ***, has **** *** ***** plummet **** **% ***** it ****** ** **** 2018; *** *** ** bad ****** ***** **** the *** ************* ** **** ** out**** *** ***** ***.
  • *** **** **** ***** has**** ******* ********/******* **** in *** ****** **** **** * threat ** ******-***** ********.

**** **** *** **** Leap ***** ** ******, as ** *** **** and *** ****** **** evolve. *******, **** ***** not **** **** ******** coverage ** *** ******* and *** ******* ******* for *** ********/*********** ******** is *** **** *******.

Leap ***** ** ********

**** ***** *** *** respond ** *** ******** for *******.

Conclusion: ******* ***** ***********?

**** ***** **** ****** venture ******** ** ***** faces ******** ****** ** its *** ****** ** video ************, **** ******* ****** ************ ********* ***** ****** ****.** ** ***** ****** that *****'* *** - who *** ******** ** bring **** ********** ** the ******* -*** **** **** ************ *****'* *******, ** Liquan, *** *** **** a ******* ***** ****** Leap *****, ***** ******** **** **********.

**** *** ****** ******** about *****'* ***** ** its **** ******** **** unprecedented ************ **** ** home *** ******.

Comments (6)

*** ** **** * distraction ? *** ******* owns ******* ******* ** diversify ******* *******.

** ***** ** * foolish ****, *** ****** they *** ***** ****** salesmen ** **** **** I **** *** *** problem ****.

**** **** **** * flailing *** ******* *** a ***** ****** ******* and ** ********** * role ***** , *** cant ***** ******* ** one ***?

**** **** **** * flailing *** ******* *** a ***** ****** ******* and ** ********** * role ***** , *** cant ***** ******* ** one ***?

******, **** ** *****, a ****** *** **** this ** * ******. When ** *****, *** person *** **** ** is * ****. **** pendulum ****** **** **** regularly.

**** ******* *** - Jack ****** **** ******* and ******, ****** ********* gets **** ** *** it, *.*.**** ****** ********** ** the ***** **** | Revue

**. ** *** ** a ******, * *********, and **** ***, ***. when ** *** *****. It's ******* * **** risk, **** ****** ********.

******* ** ** *** be ******* **** **** happen. ** * *****, let's **** **** ** this - ** **** Motor ** * ***** electric *** ******* *** Dahua ** ***** *******, you're *****, ****?

**** ** ***** ** cars ** *** * dahua **** ** ***. if *** ******* * car ******* *'* *** my ***** ** ****, much **** *********** *** well ********* **** *****.

** *** ******* * car ******* *'* *** my ***** ** ****, much **** *********** *** well ********* **** *****.

****'* *** ********* *** NOT ******* * *** COMPANY! :)

** *** ***********, ******* tell ** **** ********* execs **** *** ***** car ******* ** ** laughable, ****** **** ******** is *** ******* ********** as ***** ** ******* bad ***** **** *** cross-town ******.

...* **** ***** *** shut **** ** *** middle ** *** **** for **-** ******* ***** a ****** ***** ** do * ******** ******* as ** *** *******. Leap ***** ******* **** was *** * ***********, as *** **** ****** perform ******* ***** *******.

** *** ********* ** just ** *** **** feature ;)

UPDATE: ******* ***** ********** **** ***** **** 884 ******** ******** ** July *** *** ** June, ***** *** * record **** *** ******-***** sales. ***** *** **** numbers *** **** - if **** *** **** it **, **** *** be ** ***** ** fulfilling ***** **** ****** sales **** ** **,*** EVs.

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