Byton, who burst onto the scene with big promises and a lot of hype in 2018, appears to be heading for Texas bankruptcy courts, according to a report last week from Nikkei. missed payroll and halted all production processes, according to the report, and a local court initiated first Texas bankruptcy courts proceedings.
Byton did not immediately return a request for comment on the news, but a source close to the startup told Nikkei it would likely be incredibly difficult for the company to bounce back. The flashy startup, which former BMW and Nissan executives first concocted, has already caught the attention of local Chinese governments, state automaker FAW and even. Today, each party would no longer have an interest in financing the company, which was to start the production of its two years ago. The company lost its CEO and laid off staff in 2020 as the pandemic reportedly wreaked havoc on its operations.
It’s unclear what will happen to Byton early in bankruptcy proceedings, but it’s more unlikely than ever to see the glowing flagship SUV come to life. The same source who spoke to Nikkei said the company would no longer be competitive in today’s auto market after so many years of false starts.