AutoBeta(AutoBeta.net)06/25 Report--

Following the 100 million yuan arrears of wages for employees in Baitang China, Baiteng's US office plans to lay off staff by June 30.

According to an email sent by Biden CEO Dai Lei to all staff in the North American office, "after the All Hands Meeting discussion this morning, I confirm that layoffs will be made in the United States by June 30, and arrears of wages for American employees will be paid by June 30."

Dai Lei said in an email that the US office will retain employees in R & D-related intellectual property and operations positions, and that these core employees have been notified separately by the vice president of the department. In addition, the continued development of Baiteng's global business depends on the cooperation of the company's offices in Silicon Valley, Nanjing and Munich.

According to previous media reports, Baiteng currently owes employees about 90 million yuan (three months' wages), involving nearly 1,000 people. At the same time, the rent of Baiteng Shanghai office and Beijing office was withdrawn, and the Nanjing factory was shut down due to water outage and power outage.

An internal email sent by Baiteng Motor to employees in China on June 24 showed that the company was actively negotiating a salary solution with the board of directors, which is expected to hold a vote next week. Once the plan is approved, the company will arrange the salary payment of the employees as soon as possible according to the plan. It has been revealed that the plan that can be approved at present is only to pay the wages of employees in China in March this year, and it is still unknown when the arrears of wages after April will be resolved, and no concrete measures are expected in the short term.

Baiteng is a new energy vehicle brand under Nanjing Zhixing New Energy Technology Development Co., Ltd., founded in April 2016 by Dai Lei, former general manager of Infiniti China, and Bi Fukang, former vice president of BMW Group Engineering. In April 2019, Bi Fukang took up the post of FF CEO. At present, the M-Byte, the first mass production model of Baiteng, is not yet on the market.

Since its establishment in 2017, Baiteng has conducted four rounds of financing, with a total amount of about 1.2 billion US dollars, far lower than its rivals such as NIO, Weima and Xiaopeng. The problem of Baiteng's fragile capital chain has been magnified under the impact of the epidemic.

Due to the lack of funds, Baiteng Motor made the decision to delay the payment of wages and suspend the pay. According to an internal document issued by Baiteng Motor on April 1, the basic salary of employees in Baiteng China from April to July will be pro rata. According to internal documents, the higher the salary of the Biden car position, the higher the proportion of deferred pay, with a director level of 45%. The company promised that part of the deferred salary would be paid in a lump sum along with August salary by September 7. In addition, Baiteng's core management collectively cut salaries and contributed money to participate in the company's C round of financing.

In fact, as early as last year, new car-building forces frequently exposed problems such as broken capital chains, layoffs in arrears of wages, and so on. Nearly ten new car-building forces, such as Changjiang Automobile and Guojin Automobile, have been exposed to the phenomenon of arrears of wages, and mass production and delivery are still a threshold that many new car-building forces cannot cross.

Entering 2020, the "life" of the new power of car building is even more difficult. Great changes have taken place in the capital environment, investors have become extremely cautious about Internet car-building investment projects, new power car companies have financing difficulties, and business problems have gradually become prominent. At present, Boxun Automobile has given up the car-building project and started staff waiting measures; Jiangsu Sailin Automobile fell into business difficulties after it was reported, the branch was closed after the employees asked for wages collectively, and the road of building Sailin Motor was basically over.

At the beginning of this year, Wang Xing, founder of Meituan, predicted that "there may be only three new power enterprises left in the pattern of Chinese car companies in the future," while Baiteng CEO Dai Lei also said, "at present, there are dozens of new car-making forces in China, and consumers do not need so many brands. Now the knockout stage has begun, and enterprises will be eliminated or acquired in two years at the earliest, but a few will stay." Judging from the current development of Baiteng, it is difficult to survive in the current market competition.

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