HiPhi is shutting down production for half a year
However, it remains to be seen whether production will ever be resumed: At the same time, reports of delayed or reduced salary payments and employee redundancies are doing the rounds. The portal Car News China reports 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.
The letter is said to state that the payment date for salaries from 1 to 18 February has yet to be determined. After that, 70 per cent of wages will be paid for one month – provided the employees are still employed – and from 18 March only the regional minimum wage will be paid. “If you are anxious to pay social security, you need to resign before February 25 and pay social security by yourself because you can’t pay social security while working,” Human Horizons wrote at the end of the memo. It is also forbidden to enter the factory.
HiPhi’s only plant is located in Yancheng, north of Shanghai. However, HiPhi does not operate the plant itself, but has its vehicles built in a part of the Kia plant there. Nevertheless, HiPhi is responsible for the staff and their wages.
The company is known for building high-priced and extravagantly designed electric cars. The top-of-the-range HiPhi X and Z models have also been available to order in European markets since June 2023 at six-figure prices. The third and most affordable model to date, the HiPhi Y as a mid-range SUV, was previously only available in China. A hypercar concept was presented in late 2023 as well.
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