Highway Motors is still not giving up on self-rescue.
On August 19, Highway Motors released an after-sales service announcement stating that from this day forward, until the completion of the pre-reorganization and reorganization processes, it has authorized Jiangsu Yueda Automotive Group's wholly-owned subsidiary, Shanghai Yueda Zhihang Automotive Service Co., Ltd., to purchase parts for Highway Motors vehicles to support its after-sales services. The procurement of after-sales parts has already begun. The after-sales service centers and related cooperative outlets are gradually resuming parts supply.
The announcement concluded with a statement: "Whether during the unique circumstances of the past six months or on the road to future dawn... Highway staff will strive hard and never give up."
The resumption of supply for after-sales parts means that Highway's products can now undergo regular maintenance and repair. However, this certainly doesn’t mean that Highway vehicle owners can rest easy. In the comments section below the announcement, some vehicle owners expressed, "I've never regretted selling Highway," while others complained about the long absence of OTA updates—"Can the system be upgraded? I’m tired of celebrating New Year every day."
On August 8, a document confirming Highway Motors' parent company, Huaren Yuntong (Jiangsu) Technology Co., Ltd., had entered the pre-reorganization phase was leaked online. The document stated: "The pre-reorganization period lasts for six months from the date of this decision, and with valid reasons, it can be extended by three months upon the application of the pre-reorganization administrator."
The following day, in response to media reports misinterpreting its "reorganization," Highway Motors clarified, saying, "'Judicial pre-reorganization' is not 'bankruptcy reorganization', nor is it 'bankruptcy liquidation'." Relevant laws indicate that pre-reorganization is a preliminary procedure where a company negotiates and drafts a reorganization plan with creditors and other stakeholders before formally entering the bankruptcy reorganization process. The main difference from reorganization is that pre-reorganization is a preparatory stage, not yet formally in legal proceedings, while reorganization is an official legal process under bankruptcy law, carrying legal force.
Additionally, a WeChat public account named "Huaren Yuntong Temporary Administrator" was registered on August 10, described as a dedicated account for releasing information related to Huaren Yuntong (Jiangsu) Technology Co., Ltd. during its pre-reorganization. According to information disclosed in the pre-reorganization application, Junhe Law Firm's Shanghai branch is currently acting as the company's temporary administrator.
This series of actions raises the question of whether Highway is stubbornly asserting to the outside world that it will not "go bankrupt" or if its operations are genuinely starting to recover. Conclusions remain elusive.
However, examining the nearly six months of shutdown, the company has indeed shown a strong will to survive.
Positioned as a "luxury intelligent pure electric brand," Highway Motors belongs to Huaren Yuntong and was established in 2017. Highway Motors' founder, Ding Lei, has experience in traditional auto enterprises and local government roles.
Highway Motors was born in an era blooming with new forces in the automotive industry, but due to various factors like positioning and pricing, its sales performance has not been ideal. The price range of Highway's first mass-produced vehicle, the HiPhi X, is between 570,000 and 800,000 yuan, well above its competitors at the same time. Public information shows that from 2021 to 2022, Highway Motors sold 4,237 and 4,349 vehicles, respectively.
Since 2023, a price war has erupted in the automotive industry, intensifying competition. In October 2023, reports revealed that Highway Motors began layoffs in cities like Shanghai and Yancheng. On the first working day after the 2024 Spring Festival, it was suggested that Highway Motors had been shut down for six months, a claim the company initially refuted, but which has since proven true.
On February 22, Ding Lei appeared at Huaren Yuntong's Shanghai headquarters, indicating that the company would face tough challenges ahead but would respond proactively.
Following this, Highway began its self-rescue efforts. A particularly memorable moment was when Yang Yueqing, the project director for Highway HiPhi, promoted snacks within Highway Motors.
In May, news circulated that Highway Motors had "secured $1 billion in financing" and "would be acquired by Avita." While there may have been discussions during this time, to date, nothing has materialized.
Currently, "pre-reorganization" seems to be a trump card for Highway Motors. According to Highway's public statements, after reaching an agreement in the judicial pre-reorganization, it will proceed to judicial reorganization. This way, the agreements between the company and creditors can be secured, and the company will gradually return to normal operations.
