{"id":642993,"date":"2013-02-19T12:01:54","date_gmt":"2013-02-19T17:01:54","guid":{"rendered":"http:\/\/gigaom.com\/?p=611749"},"modified":"2013-02-19T12:01:54","modified_gmt":"2013-02-19T17:01:54","slug":"chinese-companies-slowly-collecting-discounted-u-s-electric-car-assets","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/642993","title":{"rendered":"Chinese companies slowly collecting discounted U.S. electric car assets"},"content":{"rendered":"

Electric car startup Fisker Automotive is reportedly weighing investment and acquisition<\/a> offers from Chinese auto tech companies. Bloomberg reports<\/a> that there’s a $350 million offer for 85 percent of the company from Chinese state-owned car maker Dongfeng Motor Corp, and Reuters reports<\/a> that China’s Zhejiang Geely Holding Group (which owns Volvo) has another offer for a majority stake with a deal between $200 million and $300 million.<\/p>\n

If Fisker is able to close on either of these deals, it could move its business to China and gain the funds to start manufacturing its second car the Atlantic<\/a>, as well as start paying back its loan to the Department of Energy. Fisker has been looking for suitors — partners and acquirers — for months, as it wrapped up a year with an incredible amount of problems<\/a>.<\/p>\n

\"Ray<\/a><\/p>\n

But $350 million for 85 percent stake is a major discount on the original valuation of Fisker. The company has raised a billion dollars in funding, and at one point back in 2011 had raised money at a reported valuation of $2.2 billion<\/a>. But in 2012, the company struggled heavily and I had heard that it was looking to raise money last year at a significantly lower valuation<\/a>. Clearly, when discussions are for majority stake deals for between $200 million and $300 million, there’s been massive discounting.<\/p>\n

Fisker isn’t the only energy tech company that’s looking to sell for a discount to Chinese conglomerates. Lithium ion battery maker — which sold batteries for Fisker’s electric car — went bankrupt and its assets are being sold off to Chinese auto tech giant Wanxiang for $256.6 million<\/a>. A123 Systems held the largest IPO in 2009, raising some $371 million<\/a>, and went public at $20 per share. A123 also raised more than $350 million from private investors when it was still a startup.<\/p>\n

\"Ray<\/a><\/p>\n

Wanxiang has also invested in struggling electric car company Smith Electric Vehicles<\/a>. Battery maker Boston Power also turned<\/a> to Chinese investors to take its electric car battery business to the next level, as did Protean Electric<\/a>. Electric car company Coda Automotive — which is also struggling<\/a> — has a joint venture with China battery maker Lishen and a deal with auto maker Great Wall Motors Company.<\/p>\n

Chinese companies and the Chinese government are very interested in amassing next-gen technology for electric cars. China is projected to be the largest electric car maker and market in the world, and is already the world’s largest auto market.<\/p>\n

It’s not just electric car assets that Chinese companies want. Wanxiang invested $420 million into GreatPoint Energy<\/a>, a company based in Cambridge, Mass. that converts coal into cleaner-burning natural gas. And Chinese power company Hanergy acquired the assets of Miasole for $30 million<\/a> (Miasole had raised hundreds of millions of dollars from private investors).<\/p>\n

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