Dahua Creates New Car Subsidiary as Current Electric Car Firm Struggles
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.
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 ************
** ******** **, *********** ** **************** ** *** ******* ** * new ******* ****** ******** ***** ********** Technology ******* (浙 江大华汽车技术有限公司).
*** ************* ******* ** $** ******* (150 ******* ***), **% ** ***** comes **** ***** ****** *** **% from**** *****- *****'********* ******** ******* *******. *** **** ** *** ******* is ***** ** * ***** *** firm *** ** ********** ****.
********** ******* ****** ******* *** ***** Automotive ********** **** **** * ******* on *** ***** ** *********: *** appointed ** ***** *** *** ** Leap *****.
Focused ** *********** ********
***** ********** ********** ** ***** ** help ***** ****** *** ***** *** and ************** *********, **** *** ************ listing * **** (*** *****) ***** of *********** *********:
******** *****: ********* ********, ********** ***********, technical **********, ********** ********, ********** ********, technology *********; ******** ***********; ********** ***** and *********** *************; ********** *** ***** wholesale; ********** ***** ******; ******* ********* Manufacturing (********* ******* ********* *************); ********* and ********** ********* *************; ******** ********, hardware *** ********** ********* *************; ******* equipment *** ********** ********* ************* [...]
Leap ***** ********** **** *****
*****'* ******* ******** ******* *******, **** Motor, ** **********, ****** **** **** one-tenth ** *** **** ** ********* promised: ** ******** ****, **** ********* ** ********* **,*** ***** ** *** ******** car ***** (*** ***) ** ****, but ***** ****** ********** ***** **** *******-******** ****.
Finances **** ** ******** ***** ********
**** ******** $** ******* ** ***** versus $** ******* ** ****** ** 2019, *** *** ***** ********** **********************.** ** ***** ***** *** *******, Leap ** ******** ** **** ***** for ***** *** ** ** **** expected ** ******* ***** ****** ***** it ** ********** ** **.
*******, ****'* ********* ********* *** ****** in ******** ***** ******** **** ****, with *** *************** ********** **** *** "********* ******* ******", a ********* ********* **** ****** "** ***'* ***** ***** arbitrarily *** **** ******** *** ******."
**** ******* *****, **** ***** *** find *** ******** ******* ********* *** much ******** ***** **** *** **** and ******* ** **** **** ** raise **** ***** ****, * ********* concern *** *** *******-********* *** ******. (Leap ****'* ******* ** *** ******** for *******).
Shut ***** ** ****** ** *** ****
** ******** ****, ***** ***** *** **** **** ** the ****** ** *** ******* **-** ******* ***** * ****** tried ** ** * ******** ******* as ** *** *******. **** ***** claimed **** *** *** * ***********, as *** **** ****** ******* ******* while *******. ** **** ** *** case, **** ***** ****** *** **** allowed ** ** ** **** *********. Moreover, ******** **** *************** ** ******* ** ************ *** months ****** ** ******* ****, ****** Leap **** ** ******* *** **** a *********.
Depending ** *** ***** *************
*** **** ************* ******* *** **** Motor ** **** ** * ******** manufacturer,********** **,*********************** ********** ****** ** *** *** last **** **** ** ****** *****, resulting ******** *** *************** *** **** ****.**** ********** ***** ****,**** ***** **** **** ********** ***** be "******** ** *** *** ** August [****]". *****, ********* ** * third ***** *** ************* ** * risk.
'Awkward' ****** ********
**** ***** *** ** "*******" ****** position, *** *** *** **** *************, ******* **** *** *** ***** (pictured *****) ** ****** ***** (***** $15,000) *** *** **** ******** **** other ****é-***** ****, ***** *** ********* upmarket: "*** *** *** ** **** to ** * ***** ****é, ***** has ******* ******** *****".
Broader ****** ******
***** *** **** ******* ****** **** Leap ***** ****** *******, *******:
- *****'* *** ********* ******* **%*** ** *** ******* *********** ********, which *** **** *********** ******* *** prices, ******** *** ****** ** ******** vehicles.
- *** *** *** *** * **** crowded ******** ** ****** ******** **** *** *****;*** **** ********* ********* ** *** that**% ** **** **** ** *****.
- **** ****** *** ***********, *****'* ** companies **** ********* **** "*****" ****** and ******* ********** ***** ********** ********* were *******, ***** *******. *****'* ******* ** *****, ***,*** ***** *****.*% ** ****. ******* ***** ** manufacturer, ***, *** **** *** ***** plummet **** **% ***** ** ****** in **** ****; *** *** ** bad ****** ***** **** *** *** government*** ** **** ** ******* *** ***** ***.
- *** **** **** ***** ******* ******* ********/******* **** ** *** PRC*** **** **** * ****** ** lesser-known ********.
**** **** *** **** **** ***** is ******, ** ** *** **** and *** ****** **** ******. *******, IPVM ***** *** **** **** ******** coverage ** *** ******* *** *** overall ******* *** *** ********/*********** ******** is *** **** *******.
Leap ***** ** ********
**** ***** *** *** ******* ** our ******** *** *******.
Conclusion: ******* ***** ***********?
**** ***** **** ****** ******* ******** as ***** ***** ******** ****** ** its *** ****** ** ***** ************, such ******* ****** ************ ********* ***** ****** ****.** ** ***** ****** **** *****'* CEO - *** *** ******** ** bring **** ********** ** *** ******* -*** **** **** ************ *****'* *******, ** ******, *** has **** * ******* ***** ****** Leap *****, ***** ******** **** **********.
**** *** ****** ******** ***** *****'* focus ** *** **** ******** **** unprecedented ************ **** ** **** *** abroad.
**** **** **** * ******** *** company *** * ***** ****** ******* and ** ********** * **** ***** , *** **** ***** ******* ** one ***?
******, **** ** *****, * ****** who **** **** ** * ******. When ** *****, *** ****** *** does ** ** * ****. **** pendulum ****** **** **** *********.
**** ******* *** - **** ****** with ******* *** ******, ****** ********* gets **** ** *** **, *.*.**** ****** ********** ** *** ***** fund | *****
**. ** *** ** * ******, a *********, *** **** ***, ***. when ** *** *****. **'* ******* a **** ****, **** ****** ********.
******* ** ** *** ** ******* what **** ******. ** * *****, let's **** **** ** **** - if **** ***** ** * ***** electric *** ******* *** ***** ** still *******, ***'** *****, ****?
**** ** ***** ** **** ** not * ***** **** ** ***. if *** ******* * *** ******* I'd *** ** ***** ** ****, much **** *********** *** **** ********* than *****.
** *** ******* * *** ******* I'd *** ** ***** ** ****, much **** *********** *** **** ********* than *****.
****'* *** ********* *** *** ******* A *** *******! :)
** *** ***********, ******* **** ** that ********* ***** **** *** ***** car ******* ** ** *********, ****** this ******** ** *** ******* ********** as ***** ** ******* *** ***** with *** *****-**** ******.
...* **** ***** *** **** **** in *** ****** ** *** **** for **-** ******* ***** * ****** tried ** ** * ******** ******* as ** *** *******. **** ***** claimed **** *** *** * ***********, as *** **** ****** ******* ******* while *******.
** *** ********* ** **** ** get **** ******* ;)
UPDATE: ******* ***** ********** **** ***** **** *** ******** vehicles ** **** *** *** ** June, ***** *** * ****** **** for ******-***** *****. ***** *** **** numbers *** **** - ** **** can **** ** **, **** *** be ** ***** ** ********** ***** 2019 ****** ***** **** ** **,*** EVs.
*** ** **** * *********** ? one ******* **** ******* ******* ** diversify ******* *******.
** ***** ** * ******* ****, but ****** **** *** ***** ****** salesmen ** **** **** * **** see *** ******* ****.
**** **** **** * ******** *** company *** * ***** ****** ******* and ** ********** * **** ***** , *** **** ***** ******* ** one ***?