Human Horizons, the car company known for its innovative electric vehicles sold under the HiPhi brand, has stopped production at its only factory located near Shanghai.
According to CarNewsChina, the company no longer lets workers onto the factory premises and expects to keep the assembly lines idle for six months. Salaries are also about to be cut for all staff.
Unofficial sources are reporting that all Human Horizon employees will have their paycheck cut to just 70% from February 18 until through 18. After that, they will get the minimum legal monthly wage and no bonuses. Those who don’t like these terms are asked to resign. If all of the above weren’t clear enough, the company is also closing multiple dealerships in the largest cities across China.
While no official reason is provided for these changes, it’s clear that the company is facing severe financial difficulties – likely caused by the struggling EV sales. Its production capacities allow it to make up to 150,000 electric cars per year, but it hadn’t been able to sell more than 5,000 units per year since launch in 2021. If things continue to go where they are going, insolvency is only a matter of time.
Right now, HiPhi is offering three EVs for sale: X, Y, and Z. They all sport a rather extravagant and premium appearance, but the affordable Y SUV has been enjoying the most sales, with the other two trailing far behind.
Uncompetitive pricing is likely to blame for the current state of the company: the cheapest HiPhi EV you can get in China starts from a cool 339,000 Yuan, which amounts to $47,100.
