Chery Responds to Rumors of Taking Over HiPhi's Factory

[Company Update] Chery denies fully taking over HiPhi's Yancheng plant, though renovations are indeed underway.

Core Development: Chery Has Not Fully Taken Over, But Is Renovating the Former HiPhi Plant

A spokesperson for Chery Automobile explicitly stated that reports claiming Chery has "fully taken over HiPhi’s Yancheng factory" are unfounded. However, multiple sources confirm that demolition and renovation work is actively ongoing at the facility—formerly the first Yueda Kia plant—located in the Yancheng Economic and Technological Development Zone, to prepare it for future production of Chery’s export models.

Strategic Rationale: Leveraging Existing Capacity to Advance Global Expansion

On January 29, Yueda Group and Chery signed an agreement covering EMT whole vehicles and KD (Knock-Down) projects, explicitly stating their intent to utilize the plant’s high-quality production capacity. On March 29, the official WeChat account “Jiangsu Yueda” reported that equipment removal and relocation in the welding shop were proceeding in an orderly manner, with asset inventory and process handover advancing in parallel. Additionally, since February, Chery’s supply chain platform has issued multiple tenders related to the plant’s renovation.

Industry Impact: Factory Ownership Remains Unchanged, Leaving Room for Transitional Collaboration Models

The factory was originally owned by Dongfeng Yueda Kia, later leased to HiPhi. Currently, Human Horizons remains the lessee, and ownership has not been transferred. Chery may be utilizing the facility’s capacity on a temporary basis through cooperation or contract manufacturing arrangements, rather than through direct acquisition.