Rising Auto said all is well with it and will launch a new model in the middle of the year.
(Image credit: CnEVPost)
Rising Auto said it is pushing ahead with its asset-light strategy and will remain independent, after a recent report of job cuts sparked widespread discussion.
The SAIC Motor Corp (SHA: 600104) electric vehicle (EV) unit said in a March 16 letter to partners that recent Internet rumors about it were "untrue," but didn't provide a specific explanation.
Operating independently, Rising Auto will further deepen its asset-light strategy, it said in the letter, adding that it will also launch a new model during the year.
Rising Auto will optimize its business, focus on its core businesses that are closely related to its users, and improve its overall operational efficiency by strengthening resource synergies with SAIC, it said.
SAIC formally established Rising Auto at the end of 2021 and handed over the R Brand, formerly under SAIC Passenger Vehicle, to the new brand.
The EV maker has already launched two models -- R7 SUV, F7 sedan -- both of which support battery swap.
On March 14, local media outlet RoboX said in a report that SAIC has begun laying off employees, the brunt of which will be at Rising Auto, as part of cost-cutting and brand realignment.
Rising Auto employees are expected to be laid off by more than 70 percent, while the remaining employees are likely to be subjected to pay cuts, the report said, citing a SAIC insider who goes by the pseudonym James.
The company didn't refute the report in detail in its latest letter to partners, saying only that it's all good.
Rising Auto will maintain its established product footprint and business rhythm, and ramp up on the path of independent operation, it told partners.
"In the middle of this year, Rising Auto's new heavyweight model will be unveiled," it said.
It said it will explain in detail the subsequent overall plan at a dealer meeting on March 28 and will also attend the Beijing auto show next month.
The 17th Beijing International Automotive Exhibition (Auto China 2024) will take place from April 25 to May 4, 2024, and will mark the event's return after a four-year hiatus.
