President NIO responded to the query.
CEO NIO: We have no possibility of bankruptcy
Recently, Qin Lihong, co-founder and president of NIO, responded to external doubts at the Guangzhou Auto Show by stating that NIO has released and delivered a total of five new cars so far this year, and has built a new factory with an annual production capacity of 300000 vehicles. The company's sales in various markets have increased by nearly 40% year-on-year in the first 10 months.
Qin Lihong stated that the current market is full of huge opportunities and has put forward higher requirements for every company. In the face of the current market opportunity, we must not only strive to seize it, but also maintain strategic focus. NIO Motors will not go bankrupt, and there is no possibility of bankruptcy. Please feel free to experience and purchase NIO Motors
Li Bin sent a letter to all employees: reducing positions by about 10%
On November 3rd, Li Bin issued a letter from all staff, stating that NIO will carry out adjustments related to organizational and resource investment directions. The letter mentioned that the company will reduce the number of positions by about 10%, and the specific adjustments will be completed in November.
In the letter from the entire staff, Li Bin also mentioned the "three guarantees": NIO ensures investment in core key technologies and maintains leading advantages in technology and products; Ensure sufficient sales and service capabilities to cope with fierce market competition; Ensure the timely launch of 9 core products from 3 brands.
On the basis of the "three guarantees", NIO will also merge departments and positions that have been repeatedly constructed, reform inefficient internal workflow and division of labor, eliminate inefficient positions, and improve resource efficiency. It will also postpone and reduce project investment that cannot improve the company's financial performance within three years.
The company has overcome the low sales trough and still faces challenges
Since the beginning of this year, NIO has experienced a period of "low sales". In March of this year, NIO delivered 10378 new cars, with a total of 31041 new cars delivered in the first quarter, a year-on-year increase of 20.5%.
Regarding the achievement of "average monthly sales of 10000 vehicles in the first quarter", at a media communication meeting in April this year, Li Bin joked, "Assuming that the next monthly sales are still 10000 vehicles, Qin Lihong (co founder of NIO Automobile) and I will both be looking for jobs
However, the sales trend of NIO declined and even fell below the "10000 vehicle mark". In April, NIO delivered 6658 new cars, becoming a rare car company among the top new car manufacturers to experience a month on month decline in sales. In May, NIO delivered 6155 new vehicles, with a delivery volume of less than 7000 vehicles for two consecutive months.
Under the severe sales situation, NIO adjusted its pricing strategy in June this year. On June 12th, NIO announced a price reduction of 30000 yuan for all models, lowering the price of the main model ET5 to below 300000 yuan, and lowering the price of the new ES6 to 338000 yuan. However, while lowering the price, NIO has also correspondingly reduced the vehicle rights of the first owner of the new car: after June 12th, free battery swapping will no longer be used as the basic vehicle rights, and users can choose to pay a single fee for battery swapping.
The proactive price adjustment strategy, coupled with the launch of new models, has sparked a "sales backlash" for NIO. In June of this year, NIO delivered 10707 new cars, an increase of 74% compared to the previous month, returning to the "10000 car mark". In July, NIO delivered 20462 new cars, with a record high delivery volume. Among them, the all-new ES6 delivered over 10000 units, achieving the first monthly delivery of a single car model exceeding 10000.
However, in August, September, and October, the delivery volume of NIO new cars decreased compared to the peak in July, with 16074 new cars delivered in October. At the financial report conference call after the release of NIO's 2023 first quarter performance report in June this year, Li Bin said, "NIO is very confident in achieving its target of average monthly sales exceeding 20000 vehicles in the second half of the year
Currently, NIO has achieved its goal of selling over 20000 vehicles per month in July alone, and there are still challenges in achieving the goal of 'average monthly sales exceeding 20000 vehicles in the second half of the year'.
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