The London Electric Vehicle Company (LEVC) reportedly has suspended supplier payments. According to Sky News, the company "has invoked 'force majeure' in a letter to suppliers".
"[LEVC]... has warned suppliers that they face at least a month without payments."
"... the situation has now escalated beyond control"
"As a result, we will be unable to meet our obligations in relation to [your] agreement including, without limitation, our ability to: schedule future orders; process and receive supplies; permit access to our site; process payments; or otherwise continue to provide normal supplier support services."
If true, it suggests that the company is in a difficult situation (but who isn't these days?). The production of plug-in electric LEVC TX taxis in Coventry, UK was halted on March 30, for at least three weeks, due to COVID-19 outbreak.
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We assume that beside the weaker demand for taxis, the company might be affected also by its flexible finance plans, in which drivers pay-as-they-drive (Pay-as-you-drive). The problem begins when they don't drive and don't pay for vehicles already put on the market.
The company's website displays info about an option to get a three month payment holiday.
Hopefully, LEVC, as part of the big Chinese group Geely, will be able to stay afloat and resume operations.
Source: news.sky.com via Electrive
