It seems he fell into a classic trap, the Chinese partner never intended to make cars, as the only product they ever produced is a Smart-like "mini-four-wheel-car", which was itself stolen from an HK student design.
So the plan is quite apparent, the Chinese partner just wanted his reputation and brand recognition, in exchange for promised access to the China market, to leverage huge land quota (state controlled lucrative resource, highly coveted) and bank/government loans. It never planed to make any real cars, it's just a capital play to game and profit off of the system, like pennies for grands.
Thank you, this was an excellent read for myself, an English-speaking American. It's interesting how much of a big story this is locally for that city.
Are Chinese news stories often this long and detailed?
Is it extra newsworthy because Saleen / "Sailin" vehicle manufacturing was part of that province's five year plan? Or would this have gotten the same coverage regardless?
> Thank you, this was an excellent read for myself, an English-speaking American.
Thanks Google Translate. This level of readability was unimaginable in 2015. Back then, the result was nonsense. In recent years however, the quality of Google's Chinese-English translation has significantly improved by better machine-learning models, and works especially well for formally written articles like news stories.
> Are Chinese news stories often this long and detailed?
This is a high-profile financial fraud, even by Chinese standards - whistleblowers, government funds, shareholder hostility, thousands of employees losing jobs, criminal investigation opening, and CEO flee to the USA. Naturally, it receives extensive press coverage.
> Is it extra newsworthy because Saleen / "Sailin" vehicle manufacturing was part of that province's five year plan? Or would this have gotten the same coverage regardless?
Not necessarily, a large fraud is enough. But a major connection to the government definitely helps to escalate the case to a national political scandal, implies the existence of political corruption (or at least incompetency and stupidity). Unfortunately, it happens from time to time.
The story enough fishy to look like a scam even by Chinese standards.
1. Doing business in China? Do it without govt. involvement. The less you see those guys the better.
2. Never do any joint ventures. Never deal with stocks, and public companies.
3. See a well wisher popping up on your doorstep with a business proposal? Turn the guy around, he is a scam.
4. Don't be public about your business, be as obscure as possible. Operate on online platforms. Have disposable shell company structures.
5. Don't ever get sued, and this is why you keep shell companies. Chinese legal system is almost as "sticky" as American one, if not more. Once the legal "casus belli" is established, and the court takes on the case, the plaintiff can keep suing you for all eternity.
I didn't read the article until now, it reads exactly like what I said, a capital play.
Yet shocking still, it mentions Youth Motors/Qingnian Automobile/青年汽车 as Saleen's neighbor and former plant owner, my god, this is beyond stupid.
Youth Motors made the news last years after its "tech breakthrough of cars powered by water", which in reality is just ineffcient water-to-hygrogen onboard, it became a national joke, it also received huge amounts of government investment and apprently still doing fine right now.
This is the result of local governments not having to pay their debts, it's a feast.
So the plan is quite apparent, the Chinese partner just wanted his reputation and brand recognition, in exchange for promised access to the China market, to leverage huge land quota (state controlled lucrative resource, highly coveted) and bank/government loans. It never planed to make any real cars, it's just a capital play to game and profit off of the system, like pennies for grands.