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10% of Evergrande’s Hengchi Employees Are Slated To Be Laid Off

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10% of Evergrande's Hengchi Employees Are Slated To Be Laid Off

(CTN News) – One of the leading energy  Hengchi vehicle brands of China Evergrande Group, the troubled real estate developer, is once again said to be laying off and furloughing staff as a result of financial difficulties.

As a result of the layoffs, Hengchi Automobile Trading plans to cut 10 percent of its staff, or even more in some departments.

This is according to a report in The Paper today, citing a source close to the car company. As a result, an additional 25 percent of workers will be sent home for a period of one to three months without pay.

The brand’s employees will be furloughed from Dec. 1 to Feb. 28, 2023, the report said, citing an anonymous source. As a result, subsequent adjustments will be made based on workflow, the company said.

A number of market participants are questioning whether Evergrande New Energy Vehicle Group, the Shenzhen-based property firm’s NEV arm, will be able to maintain its operations and deliver on its promise of multiple car models despite the parent company’s liquidity difficulties.

According to the above-mentioned source close to the company, Hengchi’s human resources are configured to meet the simultaneous development demands of nine car models at any given time.

In light of the current conditions of the pandemic, the company is making strategic adjustments to reduce costs while also increasing efficiency.

It is focusing its resources on ensuring the production and delivery of Hengchi 5, as well as the development and mass production of Hengchi 6 and 7.

The Chinese company Hengchi announced on Oct.

29 that the company had begun delivering the first batch of 100 Hengchi 5 sport-utility vehicles.

The company had received more than 37,000 orders in less than 15 days after kicking off global presales in July. Hengchi 5 has been in production since December 30, 2021. The first Hengchi 5 has been shipped out.

There have been rumors about downsizing before, but this is not the first time.

According to a report released on Nov. 27 by the auto news outlet Sina Auto, Evergrande NEV’s Tianjin plant was planning to lay off 60 percent of its employees because of the recession.

In some cases, the decision had already been communicated to the employees, but in others, they would be placed on unpaid leave. It has been confirmed by the company that current production at the Tianjin plant is normal at the moment.

The president of Hengchi, Liu Yangzhou, made a comment on rumors that an impending acquisition was in the works in August.

The company has been actively introducing strategic investors, and both regional governments and strong enterprise groups are showing interest in the company, according to Liu.

There is no such thing as an acquisition as there is no such thing as a merger.”

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