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Chinese EV start-up Byton furloughs staff, cuts pay as pandemic casts doubt on first car delivery

  • More than 200 workers are affected by the temporary work stoppage at Byton’s research and development base in Santa Clara, California
  • Byton’s senior management will collectively take an 80 per cent pay cut and invest in the company’s series C round of fundraising.

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Byton founder and chief executive Daniel Kirchert, on the right foreground, poses with the company’s staff and a pair of electric vehicles at its headquarters in Nanjing, capital of eastern coastal Jiangsu province. Photo: Handout

Electric vehicle start-up Byton has put hundreds of its team in the US on furlough, following lay-offs in China last year and planned pay cuts, as disruptions caused by the coronavirus pandemic threaten to derail the commercial release of its first car.

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Byton initiated the series of cost-reduction measures this week amid efforts to put on track its main operations in Nanjing, capital of eastern coastal Jiangsu province, where production of the M-Byte electric sport utility vehicle (SUV) is based.

More than 200 workers are affected by the temporary work stoppage at Byton’s North American headquarters in Santa Clara, California – a research and development base focused on software design, with about 450 staff. News of that furloughed workforce was first reported on Tuesday by US news website Electrek.

Byton confirmed on Thursday the US furloughs, as well as the pro rata salary deferral, based on seniority, of employees in China. These are part of measures that will help “alleviate the financial pressure” in its operations, according to a company statement.

The dashboard of Byton’s M-Byte electric SUV, seen at the CES 2020 trade show in Las Vegas in January, features a 48-inch high-resolution display. This car was set to go on sale later this year. Photo: Agence France-Presse
The dashboard of Byton’s M-Byte electric SUV, seen at the CES 2020 trade show in Las Vegas in January, features a 48-inch high-resolution display. This car was set to go on sale later this year. Photo: Agence France-Presse
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“Specific arrangements for the start of production are on track, while the launch of M-Byte in the Chinese market is still under evaluation,” a Byton representative said in response to text inquiries asking for comment about the company’s delivery timetable.

There are currently no further plans to cut staff in China after lay-offs made last year, according to the representative. Byton’s Nanjing plant is running at 95 per cent of normal activity after it reopened on February 11, following an extended Lunar New Year break imposed by the Chinese government to help stop the coronavirus outbreak.

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