top of page

Hengchi Automobile responds to large-scale suspension of work and arrears of wages

Recently, some media quoted people familiar with the interview as revealing that Evergrande Automobile’s Tianjin plant is laying off staff, and plans to lay off 60% of its staff. Some employees have been interviewed internally, and some will go on furlough.


On December 1, a screenshot of what appeared to be a "Notice of Suspension of Work and Retention" inside Evergrande Motors was leaked. The screenshot shows that Evergrande Hengchi New Energy Automobile Technology (Guangdong) issued a notice on November 30 saying: In view of the impact of the new crown epidemic and the serious operating difficulties of the group and the company, some projects have been suspended for production and urgently need to be optimized and adjusted for business management. Because there is no work in your position for a certain period of time, you have to apply for suspension of work.


The content of the screenshot above shows that the suspension period of this part of the employee is from December 1, 2022, to February 28, 2023, for a period of three months, and will be adjusted and notified in the future according to the work situation. During this period, if an employee establishes a labor relationship with other units, he must submit a written resignation application at least 3 working days in advance, otherwise, it will be deemed as an automatic termination of the labor relationship with the company.


According to the Economic Observation Network, in this regard, people close to Hengchi Automobile said that the overall proportion of optimization and elimination this time is 10%, some business lines may be higher than this number, and another 25% of employees will stay without pay for 1 to 3 months. Hengchi Automobile is indeed currently undergoing internal optimization and adjustment, but the scale is different from the news on the Internet.

Previously, the personnel structure of Hengchi Automobile was configured according to the simultaneous development of 9 models, but due to the current epidemic situation and market reasons, the company has made strategic adjustments to reduce costs and increase efficiency. The above-mentioned Hengchi person said that in the future, resources will be concentrated to ensure that Hengchi 5 The production and delivery of Hengchi 6, and the mass production of Hengchi 6 and 7.


Hengchi Automobile is a new energy car manufacturing project under the Evergrande Group. After nearly three years of car manufacturing, its first product, Hengchi 5, opened pre-sales in July this year. Hengchi Automobile said that the pre-sale orders for the car exceeded 37,000 within 15 days. On October 29, Hengchi Automobile delivered the first batch of 100 Hengchi 5 to users.


Evergrande revealed in August this year that it will speed up the R&D and mass production of other models. The Hengchi 6 will roll off the assembly line at the end of this year and go into mass production in the first half of next year; Production, while speeding up the R&D progress of Hengchi 1 and Hengchi 3.

1 view0 comments

Recent Posts

See All
bottom of page