Karma, Faraday plan large Chinese electric-car factoriesKarma, Faraday plan large Chinese electric-car factories

China is the world’s largest new-car market, and generous government incentives have made it a particularly strong market for vehicles that plug in.
To take advantage of that high demand, at least two companies are apparently moving ahead with plans for large factories dedicated to electric cars.
This past week, separate reports appeared indicating that Karma Automotive (nee Fisker) and Chinese tech giant LeEco are both planning electric-car factories—in the same city, no less.
DON’T MISS: Karma Revero (nee Fisker) now in pilot production in CA
Karma is owned by Chinese automotive supplier Wanxiang, while LeEco is currently backing U.S. startup Faraday Future.
Wanxiang recently applied for an environmental-impact review of a proposed electric-car factory site in the eastern Chinese city of Hangzhou, reports Bloomberg.
The proposed factory would have the capacity to build 50,000 cars per year, and comes with an estimated price tag of 2.5 billion yuan ($375 million).
Fisker Atlantic Design Prototype – 2012 New York Auto Show
It will build two Karma models, according to the application.
In addition to the Karma Revero (the former Fisker Karma), the application also says Wanxiang will build the smaller Atlantic model at the new factory as well.
First shown in 2012, the Atlantic is a smaller sedan with similar styling and a similar extended-range electric powertrain to larger Karma/Revero.
MORE: Faraday Future’s backer shows another electric luxury sedan
Fisker was not able to put the Atlantic into production before its bankruptcy, but Wanxiang apparently hasn’t given up on the model.
Out of the total annual production capacity, the Atlantic will reportedly account for 39,000 units.
It is unclear whether the Atlantic will be built exclusively in China, or whether Karma will also build the sedan at its new factory in Moreno Valley, California.
Faraday Future FFZERO1 concept
It’s possible that the Hangzhou plant will only build cars for the Chinese market, as this will allow Karma to avoid high shipping costs and import duties.
But to get approval for the factory, Karma owner Wanxiang must apply for one of a handful of permits allowing non-automakers to establish car factories, according to Bloomberg.
LeEco will presumably have to vie for one of these permits for its planned factory—which will also be located in the area around Hangzhou.
The company plans to invest 12 billion yuan ($1.8 billion) in the factory, with a goal of building 400,000 electric cars per year, according to Reuters.
The factory will be part of a larger “Eco Experience Park” that will include offices and an amusement park.
LeEco LeSee concept, 2016 Beijing Auto Show
LeEco is currently backing Faraday Future, which broke ground on a factory in North Las Vegas, Nevada, earlier this year, and has investigated a second factory site in Vallejo, California.
Known for its smart devices and online streaming services, LeEco has also shown interest in electric cars independent of Faraday.
It unveiled an electric-car concept called the LeSee at the 2016 Beijing Auto Show, and has a technical partnership with Aston Martin.
Tesla Motors is also widely expected to open a plant in China at some point. It announced its intention to do so several years ago, but thus far, no site or signed deal has been confirmed by the company.
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