Times remain tough at HiPhi

Following a production break announced in February, the premium EV brand from Human Horizons still appears to be in trouble. Local media speak of a possible takeover by a Chinese automotive company but it is uncertain whether it will save HiPhi from collapse.

Image: HiPhi

Chinese news outlets report of talks between HiPhi and Changan but have yet to provide details. Citing people close to the matter, a HiPhi source said that the company’s founder, Ding Lei, visited Changan and that the two sides had friendly communication. 

Another local media outlet reporting on the meeting later cited Changan chairman Zhu Huarong saying that the two companies were in talks but were far from a done deal.

When news broke of the six-month production pause last month, reports of delayed salary payments and redundancies were doing the rounds and bearing the question of whether production would ever resume. Car News China at the time cited an internal memo in which employees were informed of the drastic step – and the payment of January salaries was postponed to the end of February.

HiPhi’s only plant is located in Yancheng, north of Shanghai. However, HiPhi does not operate the factory but has its vehicles built in a part of the local Kia plant. Nevertheless, HiPhi is responsible for the staff and their wages.

The company is known for building high-priced and extravagant electric cars. The top-of-the-range HiPhi X and Z models have also been available to order in Europe since June 2023 at six-digit prices. The third and most affordable model to date, the HiPhi Y designed as a mid-range SUV, was previously only available in China. A hypercar concept was presented in late 2023.

cnevpost.com

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