Byton's Business Restructure Is Said to be Approved by The Board

October 18, 2020 6:59 pm

Beijing (PingWest)- Chinese electric vehicle startup Byton will restart its operation for mass production as its board of directors and board of shareholders have approved the company’s restructuring plan, Chinese local media Jiemian reported, citing source closed to the matter.

“The board of shareholders including SAIC Motor have gave nods to Byton’s business restructuring plan as the board hops to accelerate the process for research and development and mass production,” a source said.

Byton has been reportedly to withhold salaries from March to June, 2020.

In March, the Chinese EV startup has undergone a massive layoff, it has furloughed more than 200 workers at its North American headquarters in Santa Clara, California due to the coronavirus pandemic, which could delay the release date of its’ upcoming M-Byte vehicle later this year.

 In addition to furloughs, the management team of Byton will take 80% pay cut and use their own money to invest in Byton’s C round fundraising.

The furloughs come at the time when Byton is preparing to bring its M-Byte electric SUV into mass production later this year. M-Byte electric SUV, which features massive 48-inch digital dashboard, is set to produce at Byton’s Nanjing factory in China.

Previously, Byton said sales will begin in China in the second half of 2020, later in U.S and Europe. However, the pandemic could delay Byton’s plan as it closed its factory in Nanjing in February to stop the spread of virus. 

A new registered company initiated by Byton in September signaled the company’s intention to begin business restructuring.

According to business data provider Tianyancha, Byton registered a new company named Nanjing Shengteng Automobile Technology Co.,Ltd.” with a registered capital of RMB1.5 billion. The new company’s businesses focus on the R&D of auto parts, the sale of new energy complete vehicles, electric accessories for use in electric vehicles and the PHEV-specific engines and other businesses

The announcement of the new company came a month after Daniel Kirchert, the start-up’s co-founder and CEO was reported to leave the company