LEVC: Black cab maker halts supplier payments

Coventry-based taxi and van maker invokes 'force majeure' clause on supplier contracts amid shutdown crisis, reports claim

The London Electric Vehicle Company (LEVC) has warned suppliers that it will not be able to fulfill payments for a least a month, reports suggest.

A letter seen by Sky News was written by the Coventry-based electric taxi and van maker to its production partners earlier this month. It says the firm has invoked a 'force majeure' clause in its contract, increasing the difficulties automotive suppliers face during the Coronavirus pandemic. 

LEVC, owned by Chinese giant Geely, told suppliers that "despite LEVC's implementation of measures to minimise the impact of the Covid-19 pandemic to maintain production and keep its offices and sites open, the situation has escalated beyond control".

It continued: "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."

The letter claimed the force majeure clause would remain until at least May 1, although given it was sent earlier this month that may have already been extended further. Autocar has approached LEVC for comment. 

LEVC shut its manufacturing operations in Coventry on 26th March along with the majority of the industry, with no definitive re-opening date. However, with factory restarts slowly commencing across Europe, some firms in the UK are preparing for a production restart. 

Vauxhall has begun preparations for a safe reopening of its Ellesmere Port factory, although no date has been given. Nissan is also undergoing safety tests at its Sunderland plant, with a production restart expected in the coming weeks. 

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