The factory in Shanghai is closed

The Chinese manufacturer Human Horizons Group, known for its premium HiPhi brand, has announced a dramatic shift in the field of electric vehicles. suspension of activity for at least six months. The turnaround underscores signs of continued tightening in the sector, exacerbated by slowing growth and trade tensions.
Last Sunday, a factory based in Shanghai closed its doors, preventing employees from accessing their positions. However, HiPhi has recently expanded its presence in Europe, releasing two models, the X and Z. But things are not so rosy, and today the company is in the middle of a crisis. According to Bloomberg, the company denies the allegations, but there are reports of store closures and late payments to some suppliers.

The sector is under tension

Human Horizons’ financial crisis could also jeopardize a $5.6 billion deal it struck last June with Saudi Arabia’s investment ministry. This agreement was aimed at cooperation in the development, production and sale of electric vehicles.
It must be said that consumer demand is falling, and trade tensions hamper export prospects. Companies such as WM Motor and the electric car unit of China Evergrande Group are already flirting with bankruptcy, signaling a wider crisis in the sector.
This crisis at Human Horizons raises questions about the company’s future, as well as the sustainability of the EV industry in an uncertain global economic context. Finally, it is reported that the situation of the company’s Chinese workers is also a cause for concern. According to an internal memo, from February 18 to March 18, wages will be cut by up to 70%, followed by minimum wage payments.

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