Evergrande’s EV Unit Has Stopped Paying Staff, Factory Suppliers
- Second installment of employee wages weren’t paid this month
- Suppliers recall on-site staff after equipment dues not paid
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China Evergrande Group’s electric-car unit missed salary payments to some of its employees and has fallen behind on paying a number of suppliers for factory equipment, according to people familiar with the matter, evidence the stricken property developer’s debt woes are having an impact beyond its core business.
The cash flow difficulties mean China Evergrande New Energy Vehicle Group Ltd. will likely miss its target to start mass deliveries next year considering trial production of electric vehicles at its factories in Shanghai and Guangzhou has been dialed back, the people said, asking not to be identified as they’re not authorized to speak publicly.