According to news reports, HiPhi has been rescued by iAuto in a comprehensive strategic collaboration agreement. The plan includes a $1 billion investment in Human Horizons, owners of the HiPhi brand. According to a press release, the deal was signed on May 10, but the news is just now coming out.
– advertisement –
The collaboration between the two parties will allow HiPhi to resume production to fulfill sales orders. Also according to a very vaguely worded press release, it will enable “collaboration related to capital restructuring and mergers and acquisitions, technology and research and development, engineering collaboration, brand and marketing integration at home and abroad, supply chain and manufacturing integration, and a range of collaborations.” , which includes the automotive business sector.”
The deal appears to include the creation of a comprehensive restructuring plan using $1 billion in first round funds. Both sides are trying to complete the compliance deal process before the publication of the 2024 half-yearly report. Human Horizons will receive support from iAuto in the form of funds, technology and orders.
– advertisement –
The big question is who is iAuto? According to a press release, they are a leading automotive platform incorporated under the US state of Delaware. However, a search of the company turned up very little digital footprint on the company’s supposed website, which displays a sign saying “Our website is currently under maintenance”. Presumably founded by financial investments and a group of advisors with extensive experience in the automotive industry, the company appears to be focusing on clean energy vehicles. The press release makes a number of lofty statements about the company’s goals. In addition, the company holds patents related to low-temperature controlled fusion variable modules in microturbine generators, as well as a super drive system that has five times better performance than a conventional drive system.
HiPhi has been struggling to survive since February when production was halted. At the time, founder Ding Lei said there was actually only a three-month timeframe to turn the company around. Much speculation has surrounded Changan’s takeover, but it seems to have come to nothing.
Editor’s note:
If this deal really saved HiPhi, we are very happy because they are one of the few NEV companies in China that bring something different to the table. However, there seem to be a lot of questions about who iAuto really is and what they do. Perhaps more importantly, do they actually have the financial wherewithal to make such a deal?
– advertisement –
The timing is also odd given that iAuto is meant to be an American company and that the US recently announced it would increase tariffs on Chinese electric cars by up to 100%. Oddly enough, the only press release we could find was also in Chinese.
Sources: press release, Fast technology
