A second Chinese electric vehicle maker is in trouble. Yuanhang is grappling with significant financial challenges amid a slowing market and rising costs that squeeze cash flow. Observers note the strain on its development programs and the potential ripple effects for suppliers and partners.
An employee from Yuanhang’s R&D team said staff departures are increasing. Another insider reported that one department was forced to take a week of unpaid leave as the company adjusts headcount.
Sources inside the company describe cash flow difficulties and a push to secure funding from local government bodies and other investors to stabilize the business.
Yuanhang responded by confirming a restructuring plan. The company says it is in a transition phase and expects to resume normal operations once the completed steps are put in place.
Prior coverage noted that representatives tied to the HiPhi brand filed for bankruptcy earlier.
Among Yuanhang’s newest models is the H9 electric sports crossover. The all-wheel-drive vehicle uses electric motors up to 500 kilowatts, which is 680 horsepower, with peak torque of 800 Newton-meters. It can accelerate from zero to 100 kilometers per hour in 3.5 seconds. Buyers can choose from three battery configurations: 98, 120 and 150 kilowatt-hours, delivering ranges of roughly 650, 840 and 950 kilometers respectively. Earlier references mentioned an adaptation plan for the Tank 700 SUV intended for Russia, listing about ten features.