Evergrande Group's Electric Vehicle Subsidiary Unable to Pay Employees' Salaries

[Asia Economy Reporter Park Byung-hee] Bloomberg reported on the 23rd (local time) that Evergrande Group's electric vehicle subsidiary failed to pay employee salaries.

According to sources, Evergrande New Energy Vehicle, the electric vehicle subsidiary of Evergrande Group, has not paid salaries to a significant number of employees and has also failed to pay suppliers.

Evergrande Group's liquidity crisis appears to be spreading beyond its core real estate development business to the entire group.

Employees of Evergrande New Energy Vehicle receive salaries twice a month, at the beginning and on the 20th. However, many middle management employees reportedly did not receive their salaries on the 20th of this month. As payments to suppliers were delayed, suppliers began withdrawing their staff dispatched to factories in Shanghai and Guangzhou starting in July.

As a result, Evergrande Group's plan to start full-scale electric vehicle sales from next year is expected to face setbacks.

Evergrande New Energy Vehicle stated during last month's earnings announcement that if short-term funding is not secured, it may have to delay the vehicle production schedule. The company recorded a loss of 4.8 billion yuan in the first half of this year.

Evergrande New Energy Vehicle announced at this year's Shanghai Auto Show that it plans to exhibit nine models and aims to produce 5 million units annually by 2035. However, due to the group's overall liquidity crisis, it has yet to produce a single electric vehicle.

This content was produced with the assistance of AI translation services.