(Yicai) Feb. 28 -- The chairman of Changan Automobile confirmed that the Chinese carmaker is negotiating with struggling Chinese luxury electric vehicle manufacturer HiPhi for a possible acquisition, but the parties are still far from reaching an agreement.

Zhu Huarong responded to Yicai today after EV website d1ev.Com reported that Changan Auto plans to buy a 51 percent stake in HiPhi and bring in the Qingdao municipal government and funding from the Middle East to help the EV maker resolve its debt crisis.

Moreover, Yicai learned from an insider at HiPhi that its founder Ding Lei yesterday had in-person talks with Zhu, offering Changan Auto some HiPhi cars to try out.

HiPhi is a luxury EV brand under Human Horizons Technology. On Feb. 18, it announced it would halt production for six months. Ding said a few days later that HiPhi has three months to save itself, adding that many companies have shown interest in acquiring or investing in HiPhi.

Changan Auto is one of China’s four largest automobile groups. It sold nearly 2.6 million cars last year, up 8.8 percent from the previous year, according to statistics released by the Chongqing-based firm.

Editors: Dou Shicong, Futura Costaglione