Faraday Future (FF) has announced a series of strategic actions designed to support the completion and launch of its flagship FF 91 EV, the development of the mass-market FF 81 for launch in 2021 and support its supply chain.
The Chinese startup has struggled to bring its 1,050-horsepower FF 91 to market, after serious production issues and major restructuring over four dramatic years.
According to a statement, FF has overcome these troubles and is looking to raise even more money with its new investors: “In connection with its previously announced restructuring, FF has resolved all previous disputes among its major shareholders, positioning the company for substantial capital raising during 2019.”
Last month, the company signed a joint venture agreement with The9 Limited pursuant to which The9 will make capital contributions of up to $600 million in three equal instalments. FF will make contributions including its usage rights in a piece of land in China for electric car manufacturing.
FF will also grant the joint venture an exclusive license to manufacture, market, distribute and sell the Faraday Future V9 model and other potential car models in China. The expected annual production capacity of the joint venture is 300,000 cars, and the first pre-production car is expected to roll off the production line next year.
The company has begun engaging with other investors and expects its current capital-raising programmes to be completed early in the third quarter of this year.
One of these new companies is Birch Lake Associates, a boutique merchant bank that FF has created a financing programme with.
“Birch Lake is pleased to partner with FF at this critical juncture and is looking forward to assisting FF toward becoming a leading manufacturer of EVs in the United States, China and beyond,” said Birch Lake CEO Jack Butler. “FF’s technology, product strategy and unwavering commitment to its production launch of the FF 91 are impressive.”
“FF is proud to call Birch Lake one of its strongest supporters and financial partners, and we thank them and our employees’ perseverance for helping us see FF 91 to reality,” said FF CEO YT Jia.
Following a huge fallout between executives within the company, with many pulling out to create their own startups, FF introduced Waqar Hashim as its new vice president of Vehicle Line and vice president of Vehicle Engineering, responsible for streamlining engineering, design, manufacturing and budget objectives on vehicle programmes; simplifying operational procedures to improve efficiencies; and working to adjust programmes to optimize vehicles for market and regional conditions.
Prior to FF, Hashim most recently worked with General Motors, where he led the global crossover SUV programmes, including leading the 2019 Chevrolet Blazer programme and 2019 Holden Acadia for the Australia and New Zealand markets. Hashim led the global integration activities to design, validate and build those vehicles.
Following the news of the brand’s revival, FF CEO Jia said: “I also want to give a special thank you to our entire supply chain team, our suppliers and vendors who have stood by our side. Together, we have the ability to create disruptive products like FF 91 and additional future products that will bring new ideas to the traditional auto industry.”