The very small car brands are in serious trouble when it comes to their survival. Last week it was decided that the Chinese brand HiPhi will close down.
Shanghai-based car brand HiPhi was founded in 2017. But it wasn't until 2021 that the brand could deliver its first car.
And despite positive rates – especially in a new Norwegian range test – the brand is now pulling the plug. The decision was made in a fashion last week and it has already come into force.
This is written by the Chinese media Jiermian .
At HiPhi, as with so many other car brands, they are struggling with falling demand. Electric car brands in particular are suffering.
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According to Jiermian, the employees received their wages as usual until February 18. Although no one has received a salary for the month of January yet. The employees that HiPhi does not fire now will be reduced to contracts with a minimum wage.
Whether the production halt will have consequences for HiPhi's plans in Europe and a planned joint venture with a factory in Saudi Arabia is currently unknown.
HiPhi is not the only Chinese car brand suffering at the moment. According to the newspaper South China Morning Post, only a few of the Chinese car brands have a business in it.
Since September last year, more than 15 so-called 'startup brands' are either on the verge of bankruptcy or have already closed down.
At the beginning of the year, it also emerged that the communist regime wants the country's car industry to correct and, above all, clean up. It has spawned real threats. Read more about it here.
