Photo: HiPhi
HiPhi decided to halt production with immediate effect in its manufacturing center located north of Shanghai. The shutdown is reportedly only temporary, restricted to six months.
Six whole months. This is how long the HiPhi factory will remain inactive. The employees have received an internal memo that confirms the information that has been speculated in the Chinese media for the past few days.
The announcement stipulates that it is prohibited for anyone to enter the facility in Yancheng, north of Shanghai. Employees will not receive their January payment until the end of February. Meanwhile, the payment date for salaries from February 1 to February 18 is yet to be determined.
Furthermore, those who decide to remain with the company between February 18 and March 18 will receive 70 percent of their salaries. Following March 18, those who do not quit will only get a minimum wage salary.
The employees have been warned that they cannot pay social security while working, so they need to resign before February 25 and pay it themselves, according to the email from Human Horizons. All year-end bonuses will be canceled as well.
Human Horizons is the company that owns the HiPhi premium brand, widely known for rolling out futuristic models, such as the HiPhi Z.
The production center closing right now was formerly known as Dongfeng Yueda Kia's First Plant, which suspended operations at the end of June 2019. The factory used to produce the Kia Sportage, Soul, and Cerato. In November 2021, the first HiPhi to roll off the production line was the HiPhi X, even though the firm had been established four years prior.
The plant has a production capacity of 150,000 vehicles per year, manufacturing three models: the HiPhi X, Y, and Z, with the performance-oriented A, scheduled to come soon before the issues plaguing production.
Sales figures have been growing for the past three years but quite slowly, with 4,237 electric cars sold in 2021, 4,349 sold in 2022, and 4,829 in 2023. The most popular of the models is also the most affordable: the entry-level SUV HiPhi Y, starting at 339,000 yuan ($47,094).
Meanwhile, the HiPhi X SUV and the Z sedan start at over 600,000 yuan, which translates to $83,353 or 77,328 euros. Both models sell in Europe, but they are way more expensive. The X starts at 109,000 euros in Germany, while the Z can be ordered for 107,000 euros. The prices are not competitive on the European market since customers over there would be able to buy models with over 600 horsepower for less.
As reported by Car News China, at the beginning of February, HiPhi closed down its stores in Chengdu and Guangzhou, confirming that small EV carmakers are struggling in China and that the EV market is slowing down.
The announcement stipulates that it is prohibited for anyone to enter the facility in Yancheng, north of Shanghai. Employees will not receive their January payment until the end of February. Meanwhile, the payment date for salaries from February 1 to February 18 is yet to be determined.
Furthermore, those who decide to remain with the company between February 18 and March 18 will receive 70 percent of their salaries. Following March 18, those who do not quit will only get a minimum wage salary.
The employees have been warned that they cannot pay social security while working, so they need to resign before February 25 and pay it themselves, according to the email from Human Horizons. All year-end bonuses will be canceled as well.
Human Horizons is the company that owns the HiPhi premium brand, widely known for rolling out futuristic models, such as the HiPhi Z.
The production center closing right now was formerly known as Dongfeng Yueda Kia's First Plant, which suspended operations at the end of June 2019. The factory used to produce the Kia Sportage, Soul, and Cerato. In November 2021, the first HiPhi to roll off the production line was the HiPhi X, even though the firm had been established four years prior.
The plant has a production capacity of 150,000 vehicles per year, manufacturing three models: the HiPhi X, Y, and Z, with the performance-oriented A, scheduled to come soon before the issues plaguing production.
Sales figures have been growing for the past three years but quite slowly, with 4,237 electric cars sold in 2021, 4,349 sold in 2022, and 4,829 in 2023. The most popular of the models is also the most affordable: the entry-level SUV HiPhi Y, starting at 339,000 yuan ($47,094).
Meanwhile, the HiPhi X SUV and the Z sedan start at over 600,000 yuan, which translates to $83,353 or 77,328 euros. Both models sell in Europe, but they are way more expensive. The X starts at 109,000 euros in Germany, while the Z can be ordered for 107,000 euros. The prices are not competitive on the European market since customers over there would be able to buy models with over 600 horsepower for less.
As reported by Car News China, at the beginning of February, HiPhi closed down its stores in Chengdu and Guangzhou, confirming that small EV carmakers are struggling in China and that the EV market is slowing down.
Google News