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Evergrande’s electric vehicle unit suspends production: Reuters

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Evergrande did not immediately respond to a request for comment (Image: REUTERS/Aly Song)

The electric vehicle unit of China evergrande suspended mass production of its only model due to a lack of new orders, two people with knowledge of the matter said.

China Evergrande New Energy Vehicle Group said in mid-September that it had started mass production of the Hengchi 5 model at a factory in the northern city of Tianjin, and in late October said it had delivered its first 100 cars.

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However, the company has halted production because there are not enough new orders for the electric SUV, sources say.

The sources also said that many employees have yet to receive their October and November salaries.

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Evergrande did not immediately respond to a request for comment.

Two other sources said that some work was still ongoing. One said the unit planned to lay off 10% of workers and would suspend wage payments to 25% of its workers for 1 to 3 months.

It was not immediately clear how long mass production would be suspended.

The group has heralded the electric vehicle unit as key to its transformation plans, with chairman Hui Ka Yan pledging to change the group’s core business within 10 years of properties for the automotive venture and manufacture 1 million vehicles a year by 2025.

In July, the unit said it had received non-binding pre-orders for more than 37,000 units of the Hengchi 5.

Source: Moneytimes

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