California company disputes claims by battery maker XALT following layoffs

MIDLAND, MI -- The twists and turns of global trade have two battery manufacturers squabbling over who or what is to blame for recent layoffs at Midland-based XALT Energy.

In August, about a year after 100 people lost their jobs with XALT Energy in Midland, the battery manufacturer announced more layoffs would be coming. The workforce reduction affected about 37 workers at XALT's Midland plant and 12 workers at its Pontiac facility, according to a company news release issued at the time.

Company officials blamed the cuts on the loss of an order with Los Angeles Metro.

"The layoffs come after Los Angeles Metro moved an order for 60 of 95 new all-electric-powered buses to a Chinese manufacturer from one of North America's largest bus makers," the company news release stated. "XALT Energy is the exclusive battery supplier for that company's all-electric buses."

In a statement, XALT Energy CEO Richard Cundiff said, "This is a premier customer to XALT and the order for Los Angeles was an important component of our 2018 sales forecast."

"It's very frustrating for us, because, just as the North American market for electric buses is starting to take off, the playing field has tilted again to China," Cundiff's statement continued.

However, a spokeswoman for BYD Coach and Bus says the Lancaster, California-based company was awarded the contract through a fair and competitive bidding process. Its parent company, BYD, is based in Shenzhen, China.

The spokeswomen provided the following statement on behalf of the company:

"BYD Coach and Bus is the largest manufacturer of zero-emission battery-electric buses in North America, and since opening our manufacturing facility in the City of Lancaster, Los Angeles County, California, several years ago, BYD has created more than 700 U.S. jobs. BYD battery-electric buses built in the U.S. are more than 65 percent 'Buy America' compliant. Additionally, BYD electric bus batteries are manufactured in the U.S. at the company's battery facility in the City of Lancaster. BYD is proud to build buses in the U.S. and has the financial backing and stability to stay in the market for the long haul.

"BYD Coach and Bus was awarded a contract on July 27 by LA Metro for 60 40-foot battery-electric buses through an open, fair and competitive bidding process. LA Metro never 'moved' an order away for the buses to give to BYD. BYD's local jobs plan was praised by LA Metro board members during the July 27 meeting. By fulfilling the LA Metro order for 60 electric buses, BYD will create an additional 59 manufacturing jobs in the City of Lancaster.

"Since opening the doors of its U.S. manufacturing facility several years ago, BYD has delivered more than 130 American-made battery-electric buses to customers across North America and continues to lead the global market with more than 27,000 electric buses operating worldwide."

XALT did not name BYD or BYD Coach and Bus in its news release.

When asked to respond to BYD Coach and Bus' claims that it was an American company that was awarded the contract through a fair and competitive bidding process, XALT's Cundiff issued the following statement:

"Why can a Chinese company import cells to the USA and receive substantial federal subsidies while an American manufacturer is absolutely prohibited from doing the same in China? The White House should immediately halt all imports of cells made in China until the Chinese government changes this patently unfair trading practice."

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