Summary of Key Issues
Weidu Technology, a once-prominent new energy heavy truck company from Hefei, is now on the brink of collapse: on one hand, employees are collectively demanding their wages (with three months' worth of unpaid salaries and year-end bonuses), and there are suspicions that the founder has transferred assets (moving personal belongings to Belgium and selling office computers); on the other hand, the company has faced major problems in overseas markets (vin code fraud leading to an investigation by U.S. regulators, wage arrears causing legal actions abroad, and misappropriation of funds for personal use). Despite securing eight rounds of financing totaling $500 million over four years and obtaining certifications on four continents, matching Tesla's Semi, the company's success was masked by a severe mismatch between its funding and business performance—too much capital without enough revenue to support operations, and orders remaining unfulfilled, ultimately leading to a systemic failure.
Detailed Analysis
1. Wage Arrears: Employees Without Pay for Three Months
The issues at Weidu Technology first came to light when employees started protesting their unpaid wages of four to six months, as well as the 2025 performance bonuses. Some employees even experienced late payments at the beginning of the year. The "Separation Settlement Sheets" shown by departing employees indicated that the company promised to make up for social insurance contributions in July and pay the April salary, with the year-end bonus to follow in September, but these commitments were not met. Although the social insurance has been settled, only one month's salary has been paid so far, with more than 20 employees having filed for labor arbitration.
The internal situation is even worse: the Shanghai office has been completely abandoned, and the founder Han Wen's personal belongings and critical company documents have been moved to Belgium. Employees also reported that the person in charge was selling office computers. Han Wen blamed the Hefei government and shareholders for the problems and suggested transferring parts and prototypes from Hefei to Suzhou while he went on a business trip to Europe, implying he might be planning to leave the company.
2. Overseas Fraud: VIN Code Manipulation
To obtain advance payments from overseas customers, Weidu Technology resorted to fraud. The founder instructed employees to refurbish the remaining prototypes (changing vehicle identification numbers and repairing damaged parts) to deceive Chilean and Australian clients. This tactic had previously caused problems, leading to an investigation by the U.S. National Highway Traffic Safety Administration (NHTSA). At least two of the four heavy trucks operating in the U.S. were labeled as being manufactured in Georgia, USA, when they were actually produced in China for export.
If the fraud is confirmed, each violation could result in a fine of nearly $28,000, and the company may lose its access to the North American market. Additionally, overseas employees are also demanding their wages: the former North America manager is owed $413,000, and European employees have accused Han Wen of misappropriating €600,000 to fund basketball sponsorships and €100,000 for a private jet rental. The wage arrears have even disrupted overseas project progress.
3. The Bubble of Capitalist Hype
Weidu Technology was once a favorite of investors, raising $500 million in eight rounds of financing over four years from investors such as Fangyuan Capital, Jinsha River Venture Capital, Hefei state-owned assets, and Belgian sovereign funds. The company boasted numerous achievements, including obtaining vehicle certifications on four continents, matching Tesla's Semi specifications, planning a SPAC listing (a reverse merger), and predicting profitability for the year.
However, reality was far from its promises: despite the substantial funding, revenue did not keep up with expenses. For example, the 106 trucks announced in May have yet to be delivered, and the founding team has dispersed—co-founders Chen Huli (former general manager of Dayun) and Cheng Shenghui (former executive at Mercedes-Benz Power) have both left the company. In short, the company's story sounded too good, but its capabilities fell short, and the money was wasted without generating meaningful business results.
4. The Founder's Misdeeds: Shifting Blame and Transfer of Assets
Han Wen's behavior was the final straw for the company. He blamed the government and shareholders for the problems internally and secretly transferred company assets (prototypes, parts, documents). To raise money, he forced employees to modify prototypes to deceive clients and used public funds for personal expenses (basketball sponsorships and a private jet).
In the face of crisis, he still claimed there was sufficient capital, accusing the U.S. investigation of being motivated by "geopolitical bias." Such irresponsible actions have not only disappointed employees but also lost the trust of investors and customers. After all, who would want to cooperate with a company that cannot even pay its employees?
Conclusion
Weidu Technology's collapse is not an isolated incident. The new energy heavy truck industry is highly capital-intensive, and the company's rapid expansion, poor governance, and the founder's impatience for quick success contributed to its downfall. Its story serves as a warning to other startups: relying solely on financing and impressive rhetoric is insufficient; products must be of high quality, and funds must be used effectively. Otherwise, even the most glamorous facade cannot conceal internal weaknesses.