Changan Corporation, facing financial distress and rumors of imminent bankruptcy, is reportedly considering acquiring the Chinese electric vehicle maker HiPhi. This development was noted by carnewschina.com as part of ongoing industry chatter about consolidation in the Chinese auto sector.
Earlier statements suggested that Changan had taken a controlling stake, with claims of a 51% share purchase. However, the company has denied such reports, clarifying that discussions are currently exploratory and revolve around the possibility of acquisition rather than a completed deal.
In related industry news, HiPhi, a Chinese premium electric vehicle brand known for its presence in the Russian market, has paused operations at its sole manufacturing facility located in Yancheng, a city north of Shanghai. The suspension marks a significant disruption for the company and its workforce.
An internal memo circulated by HiPhi to employees via the WeChat platform has shed light on this pause. The document indicates the plant would enter a six-month production shutdown beginning February 18, with access to the factory restricted for workers. Compensation remains a point of uncertainty, as the memo promises that January salaries will be settled by the end of February, while the timing for payment of February days worked remains to be determined, reflecting the financial strain facing the company.
Meanwhile, industry observers note that the Russian market has welcomed the initial C-version rollout of Lada Iskra, a development previously reported as a milestone in domestic automotive output. The Iskra launch signifies Russia’s ongoing interest in expanding its homegrown vehicle lineup amid changing market dynamics. The broader context for these developments includes a shifting landscape in both Chinese and Russian automotive sectors, where balance sheets, strategic partnerships, and production realities influence corporate moves and investment sentiment.