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(Yicai) Feb. 29 -- Human Horizons, the struggling Chinese maker of HiPhi-branded premium electric vehicles, is encouraging employees to leave voluntarily with financial incentives.
Employees who decide to go will be paid an equivalent of one month’s salary for each past year of service, the Shanghai-based producer of new energy vehicles announced today. Workers can join the program by tomorrow evening and all transfers are scheduled by September.
Founded in 2017, Human Horizons unveiled its first model HiPhi X in 2020. Launches of two other models, HiPhi Z and Y, followed until the startup was overshadowed by rivals in China's crowded NEV market.
On Feb. 18, Human Horizons announced that it would suspend production for at least six months due to its distressed capital chain. On Feb. 22, founder Ding Lei said that the startup has three months to save itself and that many companies have shown interest in acquiring or investing in it.
A media report claimed yesterday that state-backed Changan Automobile intends to buy a 51 percent stake in Human Horizons. Zhu Huarong, chairman of the Chongqing-based auto giant, confirmed to Yicai that negotiations are ongoing but the firms are not yet close to a deal.
Human Horizons added that the voluntary severance will be based on the average pay of the past 12 months before quitting. The sum cannot be more than three times the average per capita salary in the area. Besides this, the automaker will pay another compensation of one month of pay to everyone who quits due to late notice.
The scheme takes recently hired workers into account as six months of service is rounded up to one year and those who worked for less than six months for the NEV firm will receive additional pay of two weeks.
Editors: Dou Shicong, Emmi Laine