Hyperdrive
Chinese Electric-Car Startup Planning U.S. Entry Halts Operations for 6 Months
- Byton cites financing, production challenges in memo to staff
- Workers to be furloughed during six-month suspension period
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Byton Ltd., the Chinese electric-vehicle startup that plotted a U.S. entry for years but never sold a car, is suspending all domestic operations and furloughing staff after the coronavirus pandemic made it tougher to get its business off the ground.
The suspension starts July 1 and is set to last six months, closely held Byton told staff in an email seen by Bloomberg News. The company invited employees to resign in writing by June 30 and said it is making efforts to obtain funding to pay salaries owed to workers. Those who resign would have priority in being paid.