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Chinese EV startup Byton furloughs hundreds in the US



Chinese language EV startup Byton is furloughing greater than 200 staff at its North American headquarters in Santa Clara, California as a result of coronavirus pandemic, and is reevaluating its plans to launch its first car later this 12 months.

“Given the impression of the coronavirus pandemic on the worldwide financial system and the hit that the auto trade is taking, we like others have needed to take measures to climate the exhausting occasions forward,” the corporate stated in a statement to Electrek, which first reported the information. “Our manufacturing timeline will little question be impacted. We’re evaluating that impression.”

Byton closed its manufacturing facility in Nanjing, China earlier this 12 months because the nation tried to cease the unfold of the virus, although it says work picked again up in February. The corporate, which is backed by state-owned automaker First Auto Works, has been planning to launch an electrical SUV known as M-Byte on the finish of this 12 months in China (and in different markets subsequent 12 months) that contains a display screen that spans the complete dashboard.

The pandemic has affected EV startups of all sizes, although they’re every dealing with it in numerous methods. Byton is without doubt one of the first to resort to furloughs (although the electrical bus division of Chinese language conglomerate BYD additionally positioned tons of of staff on unpaid go away in California final week, as The Verge first reported). Faraday Future, which has had some staff on furlough relationship again to late 2018 whereas it searches for funding, was simply given a $9.1 million mortgage by way of the Paycheck Safety Program for small companies within the Coronavirus Support, Reduction, and Financial Safety (CARES) Act. Electrical truck startup Workhorse additionally acquired a $1.1 million mortgage from that program.

Chinese language EV startup Nio, which made three separate rounds of cuts to its US workforce final 12 months, says it has not carried out any new layoffs or furloughs throughout the pandemic, and that none are deliberate. In truth, the corporate just lately rolled out a new version of its first electric SUV in China, after saying a $1.four billion funding in late February.

Properly-funded EV startups like Lucid Motors and Rivian (that are backed by Saudi Arabia and Amazon, respectively) haven’t but put anybody out of labor and have as a substitute spent the previous few weeks preserving potential clients up to date on the progress that’s being made throughout the pandemic. For Lucid Motors, that meant exhibiting off new photos and footage of the factory it’s constructing in Casa Grande, Arizona. Rivian, in the meantime, just lately shared how a few of its 2,000 staff are placing the startup’s electrical automobiles by way of their paces while working from home — although it has delayed the release of those two vehicles.

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