Ideal Automobile, whose performance in the first quarter did not meet expectations, continued to carry out organizational restructuring after significant layoffs and a slowdown in production pace.
According to the automotive media "Everyone Auto", Ideal has recently merged the functions of retail and delivery headquarters into sales. Ideal Automobile has confirmed the authenticity of the above information to Interface News.
An ideal car salesperson told Interface News that the performance evaluation methods for the retail and delivery ends were different before. The sales team is responsible for explaining product information to customers and leading test drives. If consumers place orders and do not initiate refunds within 24 hours, the system will lock the order and it can be counted as a KPI for sales personnel. The corresponding salary or bonus will be credited to the account in the current month and will not be affected by the actual pick-up time of the customer.
For delivery teams, delivery rate is the most important measurement indicator. If some customers delay picking up the car due to their own reasons, it will affect the delivery ratio based on the monthly sales orders. To ensure performance, the delivery end may persuade some consumers to cancel their orders first and place orders in the months when they can pick up the car. But such an operation will affect the performance of the retail department.
According to Interface News, the reasons for delayed car pickup usually include the customer's own cash flow situation, as full or down payment is required before picking up the car; In addition, some consumers will take advantage of the favorable policies to place orders, especially at the end of each month. In order to urge potential customers to place orders and complete their performance, some sales will provide subsidies for user gifts at the end of the month. Users who order cars at the end of this month are likely to need to delay delivery until the following month to pick up their cars.
After the merger of the retail and delivery teams, the goals will become more consistent, which may be beneficial for the overall sales growth of Ideal Automobile. The sales target for Ideal Automobile this year was originally set at 800000 units, but due to consecutive underperformance in delivery, the internal sales plan for this year has been significantly lowered to 560000 to 640000 units.
For the current ideal car, it is not easy to achieve the reduced annual sales guidance. In the first five months of this year, Ideal Automobile sold 141200 vehicles, less than 30% of the target low line mentioned above. This means that the average monthly sales of Ideal cars in the future need to reach nearly 60000 units, exceeding the peak monthly sales record set at the end of last year.
In response to the disorder since MEGA's launch, Ideal Automobile has already reflected and taken action earlier. In April of this year, Ideal Automobile announced the launch of a matrix organization upgrade for all employees. The changes are concentrated in the CEO's office department of Ideal Automobile, transforming from a department that originally covered the brand department, product department, business department, strategy department, and supply department to a "product and strategy group", weakening the supply chain and commercial sales functions.
After the adjustment, the top management of Ideal Automobile has invested more energy into the product business. CEO Li Xiang reflected that he will focus on user value, business efficiency, and provide long-term healthy service to users by solving problems down-to-earth.
Ideal Automotive's internal R&D personnel told Interface News that the company's organizational restructuring is almost normal, and its department cooperates or even restructures with other departments roughly every six months according to business needs. Internally, flexibility is considered an advantage in responding to market changes and quickly solving current problems. During the period of enterprise adjustment, Ideal Automobile may continue to undergo structural changes.