GAC BYD suspenses production only for “off-season” reason

Shanghai (Gasgoo)- Recently, a furlough notification released by Guangzhou GAC Group BYD New Energy Bus Co., Ltd. (GAC BYD) triggered a hot discussion in automotive industry.

Production-related workers as well as employees at the quality and planning departments of GAC BYD will be put on furlough for three months from March 1 to May 31, according to the document.

As a leading NEV makers in China, BYD's shutdown may evoke industry's misgiving over the NEV development in this country as China is ready to completely phase out NEV subsidy by 2021.

In fact, the “production suspension” is a particular decision made by GAC BYD, rather than the whole NEV manufacturing arm of BYD. Founded on August 4, 2014, GAC BYD is a 51:49 new energy bus joint venture between BYD and GAC Group involving a registered capital of RMB300 million, according to the data search platform TianYanCha.com.

After being reached by Gasgoo, GAC BYD explained that the performances in peak season and in off-season in new energy bus industry are evidently different. Since the joint venture is entering the slack season, it decided to adjust the work for part of production-related employees, having them support the operation of BYD’s plants in Shenzhen and Huizhou or putting them on short-term paid furlough. This is just a move to accommodate the present production situation. The company is running smoothly now and will let its assembly line operated at full capacity in peak season.