Faraday, an electric car brand owned by Jia Yueting, hopes to find partners in China to promote the mass production of ff91. On December 30, Carsten breitfeld, CEO of Faraday future (FF) for four months, gave a small-scale media interview including surging journalists in Beijing.
Bi Fukang said that the main task of this visit to China is to discuss with some investment institutions in China, as well as to meet with domestic automobile enterprises to discuss the mass production of FF 91 in China.
According to its plan, FF hopes to establish a joint venture with its Chinese partners, in which the partners invest in the factory and FF provides technology. "There are many automobile manufacturing plants in China whose capacity has not been fully utilized, so FF is not prepared to invest in heavy assets to rebuild the factory. We will seek partners to produce our products. "
Bi Fukang also talked about the progress of Jia Yueting's personal debt restructuring, saying Jia Yueting hopes to return home as soon as possible. "our next plan is to ensure that his personal debt restructuring can be completed so that he can return to China. Once the debt restructuring is over, he can further plan for the Chinese market and marketing. "
On the same day, it happened that the first 15 domestic model 3 of Tesla Shanghai factory were delivered to the owners of employees. Bifukang also expressed congratulations to Tesla, "it just started this project a year ago, and the progress is very fast, which proves the ability of China. It can't be so fast in any region of the world."
Now, FF is also looking forward to the acceleration of mass production, and the premise of all this is the availability of funds.
On FF mass production and financing planning:
Looking for partners to establish joint venture in China
According to the plan previously announced by FF company, FF 91 will be delivered to the first order user next year, with an annual production capacity of 10000 vehicles at the initial stage, and the largest expansion to an annual production capacity of 100000 vehicles according to the order situation. The price of ff91 will be around $200000. Ff81 models produced on the same platform will adopt smaller size and shorter mileage, and obtain more sales through lower price. Ff81 is positioned similar to Tesla Model s and will be pre mass produced by the end of next year.
Bifukang said FF's factory in Hanford is relatively small and its annual output is expected to be about 30000 vehicles. At the same time, FF hopes to find partners in China to establish a joint venture. These partners can use the existing factory resources for production, "I think the joint venture agreement is a win-win situation for both sides."
Whether it is potential investors or potential partners, there are still some concerns about FF.
According to Bifukang, on the one hand, concerns are in the electric vehicle industry itself, which requires a lot of investment and is highly competitive. "The capital market is worried about the EV industry."
On the other hand, investors are also worried about the impact of Jia Yueting's personal debt on the company. But Bi Fukang believes that Jia Yueting's promotion of personal bankruptcy reorganization means that the problem is being solved.
"If investors see that the problem can be solved, then our financing can be solved. We are also communicating with potential investors in the United States, international and China. Their attitude is relatively positive."
However, Bifukang did not disclose the specific details of the financing, saying only that "it hopes to see progress in the next month" and "it hopes to have good results in the first quarter of 2020." The staff of FF is now 400, and Bifukang said that once the financing is in place, the next step of mass production can be carried out immediately. In a previous interview, FF's funding needs were to raise about $850 million in the first quarter of 2020.
FF's IPO plan is also under planning, and Bifukang believes that it may be carried out in 2021.
Bifukang is confident that ff91, the first mass production model of FF, will remain competitive three years after its launch in January 2017.
Bifukang mentioned that the overall investment environment is not good at present, but FF has its own technology and IP. FF can realize the technology and attract some investment. Earlier, according to the verge, a US technology website, FCA and FF had negotiated to use their technology to produce FCA electric vehicles.
At present, FF's working capital mainly depends on debt financing.
On Jia Yueting's personal bankruptcy and reorganization:
Most of our creditors are very supportive of us,
Jia Yueting hopes to return to China as soon as possible
The personal debt problem of Jia Yueting, the future founder of Faraday, is still the haze of FF development.
Bi Fukang referred to a meeting of creditors convened by Jia Yueting, "I personally participated in the discussion process, most of the creditors support us very much, and hope to stand with the company after the debt restructuring." Bifukang also disclosed that two creditors proposed to participate in additional investment of the company after debt restructuring.
As for the progress of Jia Yueting's personal bankruptcy reorganization, "95% of the creditors can understand the reorganization plan and are very receptive to it. Some creditors have blacked the whole process because of personal disputes, but on the whole, creditors are very positive. "
Earlier, the judge of Delaware bankruptcy court agreed to transfer Jia Yueting's personal bankruptcy reorganization case to the United States Bankruptcy Court for the Central District of California. "Work has begun in California now, and we hope that the delay will not exceed two to three weeks," Bifukang said. The final vote should be at the end of January or the beginning of February, and I hope the whole process will be completed by the end of February, no later than March. "
"Our next step is to ensure that his personal debt restructuring can be completed so that he can return to China," he said. As soon as the debt restructuring is over, he will be able to carry out further plans in China's market and marketing. "
"I didn't realize that FF had such a big problem before," Bifukang said For example, FF is like a ship with a hole in its body. "Water keeps pouring in, and some of the holes are relatively large, but the feedback I can give as the team leader now is that the ship is not sinking anymore, so what we need to do now is to clear the water out."
"We need to tell these people (investors, partners, users, etc.) how much water there is and how it sinks, and we need to be very honest and let these people choose to get on or off the ship," he said