China e-car newcomer Future Mobility raises $200 mln from Suning, others (updated)

Fullshare Holdings

16/08/2017 08:29

* Investors include Fullshare Holdings, Chinese retailer 
Suning 
    * Firm plans to use most of proceeds for product development 
    * First Future Mobility vehicle to be launched by Q4 2019 
 
 (Updates with comments from Kirchert, background on company's 
strategy and funding efforts) 
    By Norihiko Shirouzu 
    BEIJING, Aug 16 (Reuters) - Chinese electric-car venture 
Future Mobility Corp, co-founded by former BMW  BMWG.DE  and 
Nissan Motor  7201.T  executives, has raised $200 million from 
investors including China's Suning and Fullshare Holdings 
 0607.HK  in its latest round of financing. 
    Most of the money will be used for product development, said 
Daniel Kirchert, Future Mobility's president. He has previously 
worked at Infiniti China, Nissan's luxury vehicle division, and 
BMW Brilliance Automotive. 
    Future Mobility, which plans to launch three vehicles by 
2022, has a premium midsize crossover SUV ready to go into the 
next "serious" phase of development - that is preparing for 
production and sale in the world's top two auto markets, China 
and the United States, as well as in Europe, Kirchert added. 
    The company's latest financing follows two initial funding 
rounds, which netted $100 million as potential investors Tencent 
Holdings  0700.HK  and Taiwan manufacturing heavyweight Foxconn 
 2317.TW  had to back out amid stricter implementation of 
China's capital flow controls. 
    The capital controls prevented investors from moving an 
undisclosed amount pooled in China into Future Mobility's 
account because it is incorporated in Hong Kong, said Kirchert. 
    "I have to say the investment environment has become much 
tougher," Kirchert told Reuters in an interview on Wednesday. 
    "In an early stage one or two years ago there was a big 
hype, but now people have already seen some companies struggling 
and failing, so investors of course are getting more careful." 
    Future Mobility has since set up a mainland Chinese entity 
to help make the flow of funds easier. 
    Future Mobility plans to launch the sport-utility vehicle by 
the fourth quarter of 2019 and another two - a sedan and a 
7-seater multi-purpose vehicle - by 2022.  
    The SUV will likely be priced at around 300,000 yuan 
($44,874) in China to be able to compete with the Tesla Model 3 
sedan that may cost $43,000, plus tax.  
    Future Mobility will announce a brand name for cars it plans 
to sell in early September and is also looking to unveil the 
production-ready SUV at the Consumer Electronics Show in Las 
Vegas in January next year. 
    "I am absolutely convinced that the tipping point is coming" 
for the electric car to take off in the marketplace, Kirchert 
said at Future Mobility's office in Beijing. "Cost-wise we see 
signs that electric vehicles get more and more affordable."  
    Earlier this year, Future Mobility announced plans to build 
a $1.7 billion factory in Nanjing to capitalise on rising demand 
in China which, struggling with high pollution levels in major 
cities, is aggressively pushing plug-in vehicles.  urn:newsml:reuters.com:*:nL4N1F21Z7 
    The investment needed to complete the construction of the 
factory, which will eventually have capacity to produce 300,000 
cars a year, is being financed separately with bank loans and 
funds from investors and supporters, Kirchert said. 
    There is plenty of policy support for smart, 
electric-vehicle ventures in China, but funds are getting harder 
to come by, while policymakers try to weed out companies with 
mediocre technology, analysts and executives at EV startups say. 
 ($1 = 6.6853 Chinese yuan renminbi) 
 
 (Reporting by Norihiko Shirouzu; Editing by Himani Sarkar) 
 ((vincentsy.lee@thomsonreuters.com; +822 3704 5646; Reuters 
Messaging: vincentsy.lee.thomsonreuters.com@reuters.net; follow 
me on Twitter @Rover829)) 
 
Keywords: CHINA AUTOS/FUTURE MOBILITY