Evergrande may sell its electric car company at a valuation of $1 billion

According to foreign media reports, (National Electric Vehicle Sweden,NEVS), a subsidiary of China Evergrande Group, is negotiating with venture capital firms and industry partners in the United States and Europe to find a new owner.

Evergrande is now dealing with more than $300 billion in defaulted debt. Evergrande has not only failed to pay interest on its three rounds of international bonds on time, but has been hastily selling some of its assets to raise cash.

Stefan Tilk, chief executive of Guoneng, said the money the company had could last "for some time", adding that Guoneng was in talks with European and US companies about sales or other financing and that several investors had shown interest in the company. The company could be valued at as much as $1 billion, according to a person familiar with the matter. Tilk declined to say which companies it was in talks with or comment on possible valuations.

Guoneng, a Swedish subsidiary of Evergrande New Energy vehicle Group (Evergrande New Energy vehicle Group), won a license to produce electric vehicles in China four years ago.

Earlier, Evergrande invested billions of dollars in automotive technology developers such as Sweden's Guoneng and formed joint ventures with Germany's Hofer powertrain group and Koenigsegg car company (Koenigsegg).

Evergrande New Energy said in a September filing with the stock exchange that the company was still looking for new investors and carrying out asset sales, and that if it failed to do so, it might be difficult for the company to pay its employees' salaries and other fees.

Tilk also said that if Evergrande survives the crisis, Guoneng may rehire new staff to improve its competitiveness in Europe. In August, Guoneng announced layoffs, and nearly half of the company's about 650 employees were laid off.

"if Evergrande can continue to operate, they want to have a foothold in Europe, with infrastructure such as factories, tests and laboratories," he said. Guoneng has the ability to gain a foothold in Europe. "

Meanwhile, Guoneng is focusing on building a mobile ecosystem, PONS, an autopilot shared travel network for smart cities and university campuses.