Renowned car company announces: suspension of work and production for 6 months!

Source: First Financial

    On February 18th, an employee of Gaohe Automobile revealed to the media that Gaohe Automobile had announced internally that the company had entered a comprehensive shutdown and production phase, with a waiting period of 6 months. The factory was not allowed to enter, and January wages were delayed until the end of February.

    Before the Spring Festival holiday, Gaohe Automobile held an employee meeting and notified that January‘s salary could not be paid on time, the 2023 year-end bonus would be cancelled, and employees were advised to find their own way out. In response, Gaohe Automobile stated that there was indeed an incident. Based on the actual situation of production and operation, the company is taking adjustment measures such as proactive salary cuts and deferred payments by executives to address internal and external challenges.

    According to public information, the operating entity of Gaohe Automobile, Chinese Express, was established in 2017, and its founder and chairman, Ding Lei, previously served as a senior executive at SAIC Group. Since its establishment, Gaohe Automobile has never had any public financing actions, but it has continuously launched three models, and the highest selling price of the models for sale has reached 800000 yuan, making it the highest selling single car among domestic new car brands in China.

    In June 2023, the Saudi Ministry of Investment and Chinese Express (a high-end brand entity) signed an agreement worth 21 billion Saudi Riyals (approximately 5.6 billion US dollars), aimed at establishing a joint venture to engage in automotive research and development, manufacturing, and sales. One of Saudi Arabia‘s main goals is to promote the development of the domestic electric vehicle manufacturing industry. However, Gaohe Automobile did not disclose the progress of the cooperation.

    On November 15, 2023, Gaohe Automobile signed three strategic cooperation agreements with Shanghai University of Science and Technology, Shanghai Lianhe Investment Co., Ltd., and Shanghai Lianhe Power Century Co., Ltd. in Shanghai. The cooperation agreements cover multiple fields, aiming to achieve a full chain closed-loop of the industrial chain, organically combine basic science and cutting-edge technology, and export Gaohe Automobile technology to Apollo sports cars under the United Power Century.