May 08, 2020 07:14 PM

Carmaker BYD to Repay California $247 Million for Missing Medical Supply Deadline

What’s new: Chinese electric-car maker BYD Co. Ltd., which has pivoted to medical supply manufacturing amid the pandemic, will have to return a $247 million prepayment to the government of California, after failing to meet U.S. respirator standards by April 30.

If BYD can’t get its N95 respirators the National Institute for Occupation Safety and Health (NIOSH) certification by the new deadline of May 31, it will have to refund the rest of the down payment, worth $248 million.

What’s the background: A BYD subsidiary on April 7 signed a $1 billion contract with the California Governor’s Office of Emergency Services to supply 300 million NIOSH-certified N95 respirators and 100 million single-use face masks to another certification standard, according to documents which have been made public.

However it took longer than expected to get the certification, according to BYD spokesperson Frank Girardot

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

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