Chinese vehicle manufacturer Evergrande Auto is now in the midst of wage arrears and layoffs after plans were revealed to cut 60% of workers at its Tianjin plant.
The Hengchi 5 model made by the automotive wing of Chinese real estate developer Evergrande opened for sale at the end of October. Recently, however, some Chinese web users have complained that the new car is beset with various quality problems.
The pre-sale of the Hengchi 5, a car model made by Evergrande Auto, will start on July 6. Interested customers can make an appointment to test drive, which has been made available in the last week or so.
Many Evergrande Auto employees said their department has asked them to take leave after China's seven-day National Day Holiday until October 31st.
Constrained by poor liquidity, there has been a delay in paying suppliers and projects in the group’s Evergrande Elderly Care Valley and new energy vehicles, and some projects were in suspension.
Chairman Xu Jiayin told more than 4,000 leaders at all levels attending the meeting that it is the obligation and responsibility of the company to carry out construction projects with good quality and quantity.
The ongoing storm related to the overdue redemption of Evergrande's wealth management products continues and doubts about the earlier redemption of these products by some of the company's senior executives are immense.
Evergrande Auto closed down 24.66% to HK $3.88 per share on Tuesday, with a total market value of HK $37.904 billion ($4.873 billion).
Past weeks have seen an onslaught of headlines surrounding the ordeal now faced by China Evergrande Group, once the world’s leading real estate-owning company by total assets, as it grapples with a lack of funds to service its growing debt and deteriorating public confidence.
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