Nio, the Tesla of China, surges 35% after confirming talks for $1.4 billion in government funding

One of Tesla’s main competitors in China is a step closer to securing funding for additional plants in the region.Under the preliminary agreement, the Hefei government expects to provide resources and funding support for the long-term growth of Nio in the city, the capital of the Anhui province, according to a press release.Nio will provide additional details in the next two months, Reuters reported.

Nio to get 10b investment from Hefei

Chinese electric car startup Nio Inc is expected to get strategic investment of over 10 billion yuan ($1.43 billion) from the Hefei city government in Anhui province.As part of the deal, Nio will establish in Hefei a company in charge of its China operations, including production, research and development and sales.Nio has built a plant in Hefei with JAC Motors which is producing Nio’s ES8 and ES6 SUVs.

Over 60 percent of auto businesses resume operations

Over half of the companies in China’s auto industry are resuming production in the country as the number of confirmed cases of the novel coronavirus each day continues to decline.The electric carmaker restarted production in Shanghai on Feb 10.French tire maker Michelin resumed production on Feb 10 at its plants in Shanghai and Shenyang, Liaoning province.

Kia to recall 228,000 Sedona, Sorento models in U.S.

Kia Motors Corp., South Korea’s second-biggest carmaker by sales, said Friday it will voluntarily recall more than 228,000 recreation vehicle models in the United States from April.The problem involves moisture that may get into the anti-lock brake system’s electronics, potentially causing an electrical short circuit and increasing the risk of an engine compartment fire.The Sedona is sold as Carnival in South Korea.